MOTILALOFS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.0

Here’s a well-rounded breakdown of Motilal Oswal Financial Services Ltd (MOTILALOFS), assessing its intrinsic strength and investment appeal

💼 Core Financials Overview

Profitability Metrics

ROE of 25.2% and ROCE of 18.7% reflect strong capital efficiency and operational performance.

EPS of ₹46.4 supports current pricing and underlines solid earnings power.

Quarterly Performance

A remarkable turnaround in PAT from -₹63.2 Cr. to ₹1,162 Cr. suggests cyclic recovery or one-off gains.

PAT growth of 31.8% showcases healthy operating momentum, but the jump also invites scrutiny on sustainability.

Debt Position

Debt-to-equity of 1.33 — acceptable for financial services but signals the need for consistent asset quality.

📊 Valuation Indicators

Metric Value Insight

P/E Ratio 20.2 Reasonable, slightly above industry PE (15.4)

P/B Ratio ~5.07 Fair considering high ROE

PEG Ratio 0.84 Indicates undervaluation relative to expected growth

Dividend Yield 0.53% Offers modest passive income

Conclusion: Current valuation is neither aggressive nor cheap — a balanced zone for gradual accumulation.

🏦 Business Model & Edge

Diversified across asset management, brokerage, lending, and wealth advisory, creating multiple income streams.

Brand strength and tech-enabled platforms fuel scalability and client retention.

Cyclical sensitivity to capital markets implies high upside in bull phases, but also vulnerability in downturns.

Recent earnings rebound suggests a strong recovery path, but long-term stability depends on AUM growth and lending quality.

📈 Technical Setup

RSI: 59.3 — moderately strong, nearing overbought but not overheated.

MACD: 15.4 — bullish trend in motion.

DMA Positioning

Trading above both 50-DMA (₹863) and 200-DMA (₹765) — signifying momentum and support zones intact.

🎯 Entry Zone & Long-Term Outlook

Suggested Entry Zone: ₹900–₹930 range — ideal accumulation near trend support.

Holding Strategy

Good candidate for a long-term core holding in financials, especially for those betting on equity market depth, wealth creation, and insurance penetration in India.

Recommend staggered exposure to balance cyclicality and earnings volatility.

Looking to sharpen the comparative edge with names like IIFL, Anand Rathi, or Edelweiss? I can pull up a profitability and growth matrix next to enrich the picture.

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