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Last Updated on: 03 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 532892 | NSE: MOTILALOFS

Motilal Oswal Financial Services Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 3, 2024, 9:39 pm

Market Cap 57,192 Cr.
Current Price 955
High / Low1,064/292
Stock P/E16.9
Book Value 185
Dividend Yield0.37 %
ROCE20.7 %
ROE32.6 %
Face Value 1.00
PEG Ratio1.00

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Motilal Oswal Financial Services Ltd

Competitors of Motilal Oswal Financial Services Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
ICDS Ltd 64.8 Cr. 49.964.8/32.540.7 22.20.00 %9.12 %7.69 % 10.0
HCKK Ventures Ltd 52.8 Cr. 142154/77.4293 11.50.00 %8.17 %6.44 % 10.0
Ujjivan Financial Services Ltd 7,179 Cr. 590615/4638.75 2990.59 %10.3 %32.1 % 10.0
SIL Investments Ltd 745 Cr. 703920/37922.6 2,8110.36 %2.07 %1.51 % 10.0
SBI Cards & Payment Services Ltd 66,994 Cr. 704817/64830.3 1380.35 %12.5 %22.0 % 10.0
Industry Average18,867.75 Cr1,096.5451.003,486.910.42%10.13%13.54%8.00

All Competitor Stocks of Motilal Oswal Financial Services Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales8971,3231,0251,0517541,3211,0761,0271,5021,6471,7842,1522,312
Expenses498544577559553576588584664735696915920
Operating Profit3997794484932017444884448379121,0881,2381,393
OPM %44%59%44%47%27%56%45%43%56%55%61%58%60%
Other Income469144563247115
Interest106113144112111126169190216241262295318
Depreciation11131311131617131717242422
Profit before tax286659301370816073072476366588099301,059
Tax %23%17%20%18%61%16%26%33%17%19%18%22%17%
Net Profit22154924030332510227165528532661725884
EPS in Rs3.779.344.075.020.528.623.832.788.908.9611.1112.1314.77

Last Updated: October 24, 2024, 3:07 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 24, 2024, 3:07 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales4734677721,0801,9232,7512,4502,3583,6264,2984,1787,0697,896
Expenses2593265166479151,3571,5431,5461,6102,1782,3013,0023,265
Operating Profit2131412564321,0081,3949078122,0162,1201,8774,0674,630
OPM %45%30%33%40%52%51%37%34%56%49%45%58%59%
Other Income-21-5411-271128-8018196127
Interest53311744425285174944304755961,0141,116
Depreciation26243135333724404848588387
Profit before tax162591962255068293782851,4581,6161,2423,0323,454
Tax %32%30%27%27%28%25%25%24%18%19%25%19%
Net Profit110421451723716322981901,2651,3129352,4462,802
EPS in Rs1.880.722.562.976.2310.725.043.1021.4921.9715.7440.9646.97
Dividend Payout %27%70%29%29%22%20%42%32%12%11%16%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-61.82%245.24%18.62%115.70%70.35%-52.85%-36.24%565.79%3.72%-28.73%161.60%
Change in YoY Net Profit Growth (%)0.00%307.06%-226.62%97.08%-45.35%-123.20%16.61%602.03%-562.07%-32.45%190.34%

Motilal Oswal Financial Services Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:31%
5 Years:24%
3 Years:25%
TTM:73%
Compounded Profit Growth
10 Years:42%
5 Years:53%
3 Years:22%
TTM:134%
Stock Price CAGR
10 Years:30%
5 Years:39%
3 Years:58%
1 Year:221%
Return on Equity
10 Years:22%
5 Years:24%
3 Years:25%
Last Year:33%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:30 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital15141414141515151515151560
Reserves1,2031,1561,2811,4221,7722,8713,0393,0714,4475,6596,2378,71711,010
Borrowings007952,5895,0675,3235,1584,6275,6936,15210,27813,78715,580
Other Liabilities5556778551,0641,5862,2022,1492,3703,8875,0336,4199,25210,403
Total Liabilities1,7731,8482,9455,0908,43910,41110,36010,08414,04116,86022,94931,77137,053
Fixed Assets311307300292294300302333350357466603671
CWIP0000000000000
Investments1482938141,2311,7672,8072,6863,0883,9224,6854,7876,5018,596
Other Assets1,3141,2481,8313,5666,3787,3047,3726,6629,76911,81817,69624,66727,786
Total Assets1,7731,8482,9455,0908,43910,41110,36010,08414,04116,86022,94931,77137,053

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-33140-98-1,242-1,980248195952-1391,011-3,058-350
Cash from Investing Activity +-594-606-380-314-15714-353-273-447-274-247
Cash from Financing Activity +-26-907471,7182,420-98-141-1298612823,7703,306
Net Cash Flow-119554496125-7684704498454392,709

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow213.00141.00-539.00430.00-4.00-4.00902.00808.00-3.00-4.00-9.00-9.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days33737727924023913822611592859099
Inventory Days
Days Payable
Cash Conversion Cycle33737727924023913822611592859099
Working Capital Days428313154-50-30-126-48-189-206-279-402-329
ROCE %13%10%14%13%18%18%11%10%22%19%13%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters70.40%69.50%69.50%69.57%69.46%69.68%69.66%69.53%69.39%69.16%69.04%68.86%
FIIs10.24%10.08%9.80%9.29%7.35%6.47%6.41%6.29%6.48%6.73%6.46%6.34%
DIIs2.87%3.63%4.02%5.01%5.95%6.28%6.11%6.29%6.76%6.94%6.06%6.41%
Public16.50%16.78%16.67%16.12%17.22%17.58%17.84%17.90%17.36%17.16%18.42%18.39%
No. of Shareholders73,10370,57591,81666,60570,23069,66368,94463,58361,73267,2311,35,9841,63,551

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Parag Parikh Flexi Cap Fund22,275,9862.061697.65874,4562024-11-302447.41%
Kotak Equity Opportunities Fund - Regular Plan3,700,0001.08281.98874,4562024-11-30323.12%
HDFC Large and Mid Cap Fund - Regular Plan1,856,7280.58141.5874,4562024-11-30112.33%
Bandhan Small Cap Fund1,305,3941.1799.48874,4562024-11-3049.28%
HDFC Multi Cap Fund1,087,9000.4682.91874,4562024-11-3024.41%
WhiteOak Capital Mid Cap Fund874,4562.666.64874,4562024-11-300%
Parag Parikh ELSS Tax Saver Fund819,5761.4362.46874,4562024-11-30-6.28%
WhiteOak Capital Flexi Cap Fund806,0781.4561.43874,4562024-11-30-7.82%
Samco Flexi Cap Fund523,3166.0839.88874,4562024-11-30-40.16%
Helios Flexi Cap Fund514,6521.9139.22874,4562024-11-30-41.15%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)164.6362.8989.1484.6512.47
Diluted EPS (Rs.)162.9162.8988.3882.7112.20
Cash EPS (Rs.)169.6867.0291.1584.9217.23
Book Value[Excl.RevalReserv]/Share (Rs.)588.49424.83382.34306.12210.86
Book Value[Incl.RevalReserv]/Share (Rs.)588.49424.83382.34306.12210.86
Revenue From Operations / Share (Rs.)474.35282.43288.18247.31159.19
PBDIT / Share (Rs.)277.09128.23143.68137.9555.33
PBIT / Share (Rs.)271.54124.28140.44134.7352.64
PBT / Share (Rs.)203.4883.99108.3799.3719.26
Net Profit / Share (Rs.)164.1463.0787.9181.7014.54
NP After MI And SOA / Share (Rs.)163.8362.9987.8584.9612.38
PBDIT Margin (%)58.4145.4049.8555.7834.75
PBIT Margin (%)57.2444.0048.7354.4733.07
PBT Margin (%)42.8929.7337.6040.1712.09
Net Profit Margin (%)34.6022.3330.5033.039.13
NP After MI And SOA Margin (%)34.5322.3030.4834.357.77
Return on Networth / Equity (%)27.9514.9023.0828.105.94
Return on Capital Employeed (%)22.5713.3220.5223.6412.70
Return On Assets (%)7.664.047.738.821.81
Long Term Debt / Equity (X)0.971.110.690.780.91
Total Debt / Equity (X)1.581.641.081.281.50
Asset Turnover Ratio (%)0.250.170.200.220.15
Current Ratio (X)2.222.412.422.352.37
Quick Ratio (X)2.222.412.422.352.37
Dividend Payout Ratio (NP) (%)10.3415.916.625.7370.80
Dividend Payout Ratio (CP) (%)10.0014.976.385.5258.20
Earning Retention Ratio (%)89.6684.0993.3894.2729.20
Cash Earning Retention Ratio (%)90.0085.0393.6294.4841.80
Interest Coverage Ratio (X)4.073.184.484.701.66
Interest Coverage Ratio (Post Tax) (X)3.412.573.743.991.44
Enterprise Value (Cr.)26560.1510493.5513829.2611431.5110675.76
EV / Net Operating Revenue (X)3.762.513.223.154.53
EV / EBITDA (X)6.435.536.465.6513.03
MarketCap / Net Operating Revenue (X)3.512.163.022.533.13
Retention Ratios (%)89.6584.0893.3794.2629.19
Price / BV (X)2.841.442.282.072.39
Price / Net Operating Revenue (X)3.512.163.022.533.13
EarningsYield0.090.100.100.130.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Motilal Oswal Financial Services Ltd as of December 3, 2024 is: 1,023.01

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 3, 2024, Motilal Oswal Financial Services Ltd is Undervalued by 7.12% compared to the current share price 955.00

Intrinsic Value of Motilal Oswal Financial Services Ltd as of December 3, 2024 is: 1,196.18

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 3, 2024, Motilal Oswal Financial Services Ltd is Undervalued by 25.25% compared to the current share price 955.00

Last 5 Year EPS CAGR: 16.93%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.17%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -63.67, which is a positive sign.
  3. The company has shown consistent growth in sales (134.23 cr) and profit (203.77 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 193.08, which may not be favorable.
  2. The company has higher borrowings (5,773.00) compared to reserves (3,991.15), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Motilal Oswal Financial Services Ltd:
    1. Net Profit Margin: 34.6%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 22.57% (Industry Average ROCE: 10.13%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 27.95% (Industry Average ROE: 13.54%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.41
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.22
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 16.9 (Industry average Stock P/E: 51)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.58
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Motilal Oswal Financial Services Ltd. is a Public Limited Listed company incorporated on 18/05/2005 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L67190MH2005PLC153397 and registration number is 153397. Currently Company is involved in the business activities of Security and commodity contracts brokerage. Company’s Total Operating Revenue is Rs. 2571.84 Cr. and Equity Capital is Rs. 14.91 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & InvestmentsMotilal Oswal Tower, Rahimtullah Sayani Road, Mumbai Maharashtra 400025shareholders@motilaloswal.com
http://www.motilaloswalgroup.com
Management
NamePosition Held
Mr. Raamdeo AgarawalNon Executive Chairman
Mr. Motilal OswalManaging Director & CEO
Mr. Navin AgarwalManaging Director
Mr. Ajay Kumar MenonWholeTime Director & CEO
Mr. Rajat RajgarhiaWholeTime Director & CEO
Mr. Chandrashekhar KarnikIndependent Director
Mr. Pankaj BhansaliIndependent Director
Mr. C N MurthyIndependent Director
Ms. Divya MomayaIndependent Director
Ms. Swanubhuti JainIndependent Director

FAQ

What is the latest intrinsic value of Motilal Oswal Financial Services Ltd?

The latest intrinsic value of Motilal Oswal Financial Services Ltd as on 03 December 2024 is ₹1023.01, which is 7.12% higher than the current market price of ₹955.00. The stock has a market capitalization of 57,192 Cr. and recorded a high/low of ₹1,064/292 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹11,010 Cr and total liabilities of ₹37,053 Cr.

What is the Market Cap of Motilal Oswal Financial Services Ltd?

The Market Cap of Motilal Oswal Financial Services Ltd is 57,192 Cr..

What is the current Stock Price of Motilal Oswal Financial Services Ltd as on 03 December 2024?

The current stock price of Motilal Oswal Financial Services Ltd as on 03 December 2024 is 955.

What is the High / Low of Motilal Oswal Financial Services Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Motilal Oswal Financial Services Ltd stocks is 1,064/292.

What is the Stock P/E of Motilal Oswal Financial Services Ltd?

The Stock P/E of Motilal Oswal Financial Services Ltd is 16.9.

What is the Book Value of Motilal Oswal Financial Services Ltd?

The Book Value of Motilal Oswal Financial Services Ltd is 185.

What is the Dividend Yield of Motilal Oswal Financial Services Ltd?

The Dividend Yield of Motilal Oswal Financial Services Ltd is 0.37 %.

What is the ROCE of Motilal Oswal Financial Services Ltd?

The ROCE of Motilal Oswal Financial Services Ltd is 20.7 %.

What is the ROE of Motilal Oswal Financial Services Ltd?

The ROE of Motilal Oswal Financial Services Ltd is 32.6 %.

What is the Face Value of Motilal Oswal Financial Services Ltd?

The Face Value of Motilal Oswal Financial Services Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Motilal Oswal Financial Services Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE