MOTILALOFS - Investment Analysis

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

Investment Rating: 4.2

💼 Fundamental Analysis: Motilal Oswal Financial Services (MOTILALOFS)

Motilal Oswal is a diversified financial services firm with strong presence in broking, asset management, and lending. Its fundamentals suggest a solid long-term investment case, especially given its profitability and valuation metrics.

Metric Value Implication

Market Cap ₹56,195 Cr. Large-cap; strong brand and diversified business

Stock P/E 20.2 Reasonable — slightly above industry PE of 15.4

PEG Ratio 0.84 Attractive — undervalued relative to earnings growth

ROE / ROCE 25.2% / 18.7% Excellent — strong capital efficiency

Dividend Yield 0.53% Modest — bonus for long-term holders

Debt-to-Equity 1.33 High — leverage risk due to lending operations

EPS ₹46.4 Strong earnings base

Profit Growth (QoQ) +31.8% Robust — sharp turnaround from previous loss

📈 Technical & Trend Analysis

Current Price: ₹937

DMA 50 / DMA 200: ₹863 / ₹765 — bullish trend, trading above both

RSI: 59.3 — approaching overbought zone

MACD: +15.4 — bullish momentum

Volume: Healthy — sustained investor interest

✅ Is It a Good Long-Term Investment?

Yes. Motilal Oswal offers a compelling mix of strong ROE, attractive PEG ratio, and diversified financial exposure. The recent turnaround in profitability and growing FII interest further support the long-term thesis. The only caution is its high debt-to-equity, which is typical for NBFCs but worth monitoring.

🎯 Ideal Entry Price Zone

Buy Zone: ₹850–₹900

Near 50 DMA and previous consolidation zone

Accumulate on dips or during broader market corrections

Entry ideal if PEG remains below 1 and ROE sustains above 20%

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 3–5 years — to benefit from financial sector growth and compounding returns

Exit Strategy

Partial Exit near ₹1,050–₹1,100 if valuation stretches (P/E > 25)

Hold if ROE stays above 20% and PAT growth continues

Reassess if debt-to-equity rises above 1.5 or asset quality deteriorates

Would you like a comparison with peers like IIFL, Edelweiss, or Bajaj Finserv to explore broader financial sector opportunities?

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