MOTILALOFS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.3

📊 Core Financials Overview

Profitability

PAT rebounded sharply to ₹532 Cr from a loss of ₹8.15 Cr — a strong turnaround.

EPS: ₹23.4 — solid earnings base.

Return Metrics

ROE: 21.4% — excellent shareholder return.

ROCE: 17.8% — healthy capital efficiency.

Debt Profile

Debt-to-equity: 1.23 — moderately high, typical for financial services firms, but manageable given strong returns.

Cash Flow: Not explicitly stated, but the earnings recovery and diversified revenue streams suggest improving cash generation.

💹 Valuation Indicators

Metric Value Commentary

P/E Ratio 39.4 Richly valued vs. industry average of 15.9 — reflects premium positioning.

P/B Ratio ~7.76 Elevated, but justified by strong ROE and brand strength.

PEG Ratio 1.56 Fairly valued relative to growth — not cheap, but not excessive.

Intrinsic Value Likely near ₹850–₹900 Slightly below current price, suggesting limited upside in short term.

🧠 Business Model & Competitive Advantage

Motilal Oswal Financial Services Ltd. (MOFSL) is a diversified financial services powerhouse with operations across

Capital Markets: Retail and institutional broking, investment banking, margin funding, and depository services.

Asset & Wealth Management

AUM crossed ₹1.5 lakh Cr, with strong growth in mutual funds, PMS, and AIFs

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Focus on high-quality, earnings-led investing — consistent CAGR of 34% over five years

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Home Finance: Affordable housing finance arm contributes interest income and expands retail footprint.

Treasury Investments: Proprietary investments and financing activities add to bottom-line strength.

Its competitive edge lies in brand trust, multi-channel distribution, and deep research capabilities, making it a compelling play on India’s financialization trend

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📈 Technical & Sentiment Signals

RSI: 53.2 — neutral zone, no strong momentum.

MACD: Positive — mild bullish sentiment.

Volume: Slightly below average — suggests consolidation.

DMA 50/200: Price above both — confirms long-term uptrend.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹880–₹910 — near DMA levels and below recent highs.

Long-Term View: MOTILALOFS is a high-quality financial services stock with strong fundamentals, diversified revenue, and brand equity. Suitable for long-term holding, especially for investors seeking exposure to India’s growing investment and wealth management ecosystem. Dividend yield of 0.54% adds modest income support.

You can explore its stock report on The Economic Times or business model breakdown on AInvest for deeper insights. Let me know if you'd like a comparison with IIFL or Edelweiss.

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www.ainvest.com

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economictimes.indiatimes.com

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