Motilal Oswal Finance is a well-established player in the Indian financial services sector, with a strong presence in the market for over two decades.
The company has a diverse business portfolio, including asset management, investment banking, and wealth management.
Its asset management arm, Motilal Oswal Asset Management, has a strong track record of delivering consistent returns to its investors.
Motilal Oswal Finance has a robust distribution network, with a presence in over 2,500 locations across India.
This wide reach enables the company to cater to a large customer base and provide its services to a diverse set of clients.
The company's financial performance has been impressive, with a consistent increase in revenue and profit over the years.
Motilal Oswal Finance Share Price
The Motilal Oswal Finance share price has seen significant growth in recent years. Operating revenue has increased to ₹7,068 Cr, a year-on-year growth of 69.21%.
The company's EBITDA has also seen a substantial rise to ₹4,129 Cr, with a year-on-year growth of 117.77%. This indicates a strong profitability for the company.
The profit before tax is ₹3,032 Cr, with a year-on-year growth of 144.12%. This is a clear indication of the company's ability to generate profits.
Here are the key financial metrics that highlight the company's growth:
The company's net worth has also seen a growth to ₹8,633 Cr, with a year-on-year growth of 40.19%.
Company Information
Motilal Oswal Finance is a non-banking finance company that offers a range of financial services to its customers.
The company was founded in 1987 and is headquartered in Mumbai, India.
Motilal Oswal Finance has a strong presence in the Indian financial market with a network of over 3,000 branches across the country.
About
We're a company that's been around for over 10 years, with a rich history of innovation and growth.
Our mission is to provide high-quality products and services that exceed our customers' expectations.
We're a team of experienced professionals who are passionate about what we do and dedicated to making a positive impact.
We're headquartered in a major city with a diverse and vibrant community.
Our products are designed to be user-friendly and accessible to people of all ages and skill levels.
We're committed to continuous improvement and regularly update our products and services to meet the evolving needs of our customers.
Corporate Actions
Corporate Actions are a crucial aspect of a company's financial life. They can significantly impact shareholders, so it's essential to stay informed.
Motilal Oswal Financial Services has a history of corporate actions, including bonus issues, splits, and dividends.
In 2024, the company issued a bonus of Re. 0.00 in the ratio of 3:1 of Re. 1/- on June 10th.
Dividend payments are another common corporate action. Motilal Oswal Financial Services has a history of paying dividends, with the first payment in 2022 worth Rs. 3.00 per share.
Here's a breakdown of the company's dividend payments:
It's worth noting that the company has also paid interim dividends, with the most recent one being Rs. 14.00 per share on February 6th, 2024.
Market Analysis
Motilal Oswal Finance's share price has been influenced by its strong presence in the NBFC segment, with a market share of around 4.5% in the non-banking finance sector as of 2022.
The company's diversified business model, which includes asset finance, consumer finance, and wealth management, has contributed to its growth and stability.
With a strong distribution network of over 8,000 branches and 1.5 lakh+ distributors, Motilal Oswal Finance is well-equipped to tap into the growing demand for financial services in India.
Hits and Misses
In the world of market analysis, it's essential to separate the hits from the misses. The global e-commerce market is expected to reach $6.5 trillion by 2023, a significant increase from $2.8 trillion in 2017.
One hit is the growing demand for online shopping, particularly in emerging markets. The number of digital buyers in India, for example, is projected to reach 573 million by 2025.
The rise of social media has been a game-changer for businesses, allowing them to reach a vast audience with minimal costs. In 2020, 3.8 billion people used social media worldwide.
However, not all is smooth sailing. The increasing competition in the e-commerce space has led to a decline in profit margins for many businesses. In 2020, the average profit margin for online retailers was 2.5%, down from 4.5% in 2018.
The pandemic has accelerated the shift to online shopping, with many consumers turning to e-commerce as a safe and convenient option. In 2020, online sales grew by 14.9% in the United States.
On the other hand, some businesses have struggled to adapt to the changing market landscape. The number of brick-and-mortar store closures increased by 23% in 2020, a trend that's likely to continue.
Valuations and Performance
In the world of finance, understanding valuations and performance is crucial for making informed investment decisions. Valuations can be categorized into five main categories: Buy, Outperform, Hold, Underperform, and Sell.
The performance of a stock is often measured by its 52-week high and low, as seen in Example 2. Here, we can see that the 52-week high for a particular stock is ₹1,064, while the 52-week low is ₹308.
A stock's open price and previous close are also important indicators of its performance. For instance, if a stock's open price is ₹990 and its previous close is ₹985, it may indicate a slight increase in value. The volume of shares traded is another key metric, with 912,293 shares being traded in this example.
EPS, or earnings per share, is a crucial metric for evaluating a company's financial performance. According to Example 2, the EPS for a particular stock is ₹56.48. This can be a useful indicator of a company's profitability.
Here's a summary of key performance metrics:
Financial Services Ltd
Let's take a closer look at the financials of Motilal Oswal Finance. Their operating revenue has seen a significant YoY growth of 69.21% to ₹7,068 Cr.
One of the key drivers of this growth is their EBITDA, which has increased by a whopping 117.77% to ₹4,129 Cr.
Their Profit Before Tax has also seen a substantial growth of 144.12% to ₹3,032 Cr, and their Profit After Tax has grown by 162.22% to ₹2,446 Cr.
In terms of their financial position, their Net Worth has increased by 40.19% to ₹8,633 Cr, and their Total Assets have grown by 38.33% to ₹31,829 Cr.
Here's a breakdown of their financial metrics:
- Operating Revenue: ₹7,068 Cr (YoY+69.21%)
- EBITDA: ₹4,129 Cr (YoY+117.77%)
- Profit Before Tax: ₹3,032 Cr (YoY+144.12%)
- Profit After Tax: ₹2,446 Cr (YoY+162.22%)
- Net Worth: ₹8,633 Cr (YoY+40.19%)
- Total Assets: ₹31,829 Cr (YoY+38.33%)
- Total Outside Liabilities: ₹23,196 Cr (YoY+37.65%)
Their cash flow from operating activity has seen a significant growth of 88.57% to -₹349.64 Cr, while their cash flow from investment activity has increased by 14.15% to -₹246.79 Cr.
On the other hand, their cash flow from financing activity has decreased by 12.63% to ₹3,306 Cr.
Frequently Asked Questions
Is Motilal Oswal Financial Services a good buy?
Motilal Oswal Financial Services has been rated 'Strong Buy' by MarketsMojo and has consistently outperformed its sector with impressive returns. Consider investing in this stock for potential growth.
What is the target price of Motilal Oswal Financial Services?
The target price of Motilal Oswal Financial Services is ₹1045.0, representing a potential 11.15% increase from the current market price.
Who is the owner of Motilal Oswal Financial Services Ltd?
Motilal Oswal is the Chairman and Managing Director of Motilal Oswal Financial Services Ltd. He co-founded the company with Raamdeo Agrawal in 1987.
Sources
- https://www.moneycontrol.com/india/stockpricequote/finance-general/motilaloswalfinancialservices/MOF01
- https://www.screener.in/company/MOTILALOFS/consolidated/
- https://equitypandit.com/historical-data/MOTILALOFS
- https://www.5paisa.com/stocks/motilalofs-share-price
- https://www.etmoney.com/stocks/motilal-oswal-financial-services-ltd/878
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