⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
MOTILALOFS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | MOTILALOFS | Market Cap | 43,509 Cr. | Current Price | 722 ₹ | High / Low | 1,097 ₹ |
| Stock P/E | 45.2 | Book Value | 134 ₹ | Dividend Yield | 0.83 % | ROCE | 17.8 % |
| ROE | 21.4 % | Face Value | 1.00 ₹ | DMA 50 | 845 ₹ | DMA 200 | 859 ₹ |
| Chg in FII Hold | -0.59 % | Chg in DII Hold | 0.58 % | PAT Qtr | 245 Cr. | PAT Prev Qtr | 194 Cr. |
| RSI | 34.6 | MACD | -33.8 | Volume | 33,13,467 | Avg Vol 1Wk | 34,60,475 |
| Low price | 488 ₹ | High price | 1,097 ₹ | PEG Ratio | 1.78 | Debt to equity | 1.16 |
| 52w Index | 38.5 % | Qtr Profit Var | -15.3 % | EPS | 16.0 ₹ | Industry PE | 19.1 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT rose to 245 Cr. from 194 Cr., but YoY profit variation shows -15.3%, indicating volatility. ROE at 21.4% and ROCE at 17.8% are decent but not exceptional.
- Margins: EPS of 16 ₹ supports profitability, though margins are pressured by rising costs.
- Debt: Debt-to-equity ratio of 1.16 is relatively high, raising concerns about leverage.
- Cash Flow: Dividend yield of 0.83% is modest, suggesting reinvestment focus rather than strong shareholder payouts.
💹 Valuation Indicators
- P/E Ratio: 45.2 vs Industry PE of 19.1 → Significantly overvalued compared to peers.
- P/B Ratio: Current Price (722 ₹) / Book Value (134 ₹) ≈ 5.39 → Premium valuation.
- PEG Ratio: 1.78 → Fair but leaning expensive relative to growth.
- Intrinsic Value: Current price exceeds fair value zone, suggesting limited upside unless earnings growth accelerates.
🏭 Business Model & Competitive Advantage
- Motilal Oswal Financial Services operates in diversified financial services including broking, asset management, and wealth advisory.
- Strong brand presence and established client base provide competitive advantage.
- Exposure to capital markets makes earnings cyclical and sensitive to market volatility.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 600 ₹ – 650 ₹, closer to support levels and below DMA 200.
- Long-Term Holding: Suitable for investors with high risk tolerance; strong brand but cyclical earnings and high valuation warrant cautious staggered buying.
✅ Positive
- Strong brand recognition in financial services.
- ROE above 20% reflects decent efficiency.
- Quarterly PAT growth from 194 Cr. to 245 Cr. shows resilience.
⚠️ Limitation
- High debt-to-equity ratio at 1.16 increases financial risk.
- P/E and P/B ratios indicate overvaluation compared to industry.
- Dividend yield is modest, limiting passive income appeal.
📉 Company Negative News
- FII holding decreased by 0.59%, showing reduced foreign investor confidence.
- Quarterly profit variation of -15.3% highlights earnings volatility.
📈 Company Positive News
- DII holding increased by 0.58%, reflecting domestic institutional support.
- EPS of 16 ₹ and PAT growth quarter-on-quarter demonstrate operational strength.
🌐 Industry
- Financial services sector is cyclical, heavily dependent on capital market performance.
- Industry PE at 19.1 indicates peers trade at lower valuations, highlighting premium pricing for Motilal Oswal.
🔎 Conclusion
Motilal Oswal Financial Services shows strong brand positioning and decent return metrics, but high debt and stretched valuations limit attractiveness. Entry is better around 600–650 ₹ for long-term investors willing to tolerate cyclical risks. The company remains fundamentally sound but requires cautious accumulation given current overvaluation.
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