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Last Updated on: 06 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Motilal Oswal Financial Services Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 5, 2024, 12:21 am

Market Cap 43,531 Cr.
Current Price 727
High / Low829/222
Stock P/E15.6
Book Value 147
Dividend Yield0.48 %
ROCE20.7 %
ROE32.6 %
Face Value 1.00
PEG Ratio0.26

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
HCKK Ventures Ltd 55.6 Cr. 150154/77.4242 11.30.00 %8.17 %6.44 % 10.0
HB Portfolio Ltd 144 Cr. 134177/49.115.2 2660.75 %3.34 %2.90 % 10.0
Haryana Capfin Ltd 177 Cr. 340448/86.161.8 7690.00 %1.30 %0.97 % 10.0
Harmony Capital Services Ltd 14.5 Cr. 48.473.4/36.2 4.470.00 %6.55 %5.09 % 10.0
Gujarat Credit Corporation Ltd 66.0 Cr. 26.437.4/18.2 5.560.00 %0.06 %0.79 % 10.0
Industry Average8,857.56 Cr605.8566.484,834.814.83%15.24%17.07%7.43

All Competitor Stocks of Motilal Oswal Financial Services Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales9481,1418971,3231,0251,0517541,3211,0761,0271,4991,6471,784
Expenses413476498544577559553576588584661735696
Operating Profit5356653997794484932017444884448389121,088
OPM %56%58%44%59%44%47%27%56%45%43%56%55%61%
Other Income18469144563147
Interest103109106113144112111126169190216241262
Depreciation12141113131113161713171724
Profit before tax42055028665930137081607307247636658809
Tax %20%15%23%17%20%18%61%16%26%33%17%19%18%
Net Profit33746222154924030332510227165528532661
EPS in Rs22.7831.3815.0637.3816.2920.102.1034.4915.3111.1335.6235.8344.43

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4714734677721,0801,9232,7512,4502,3583,6264,2984,1785,958
Expenses3092593265166479151,3571,5431,5461,6102,1782,3012,676
Operating Profit1622131412564321,0081,3949078122,0162,1201,8773,282
OPM %34%45%30%33%40%52%51%37%34%56%49%45%55%
Other Income7-21-5411-271128-80181948
Interest45331174442528517494430475596909
Depreciation13262431353337244048485871
Profit before tax153162591962255068293782851,4581,6161,2422,350
Tax %32%32%30%27%27%28%25%25%24%18%19%25%
Net Profit104110421451723716322981901,2651,3129351,886
EPS in Rs7.167.512.8610.2411.8924.9242.8920.1812.3885.9787.8762.97127.01
Dividend Payout %21%27%70%29%29%22%20%42%32%12%11%16%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)5.77%-61.82%245.24%18.62%115.70%70.35%-52.85%-36.24%565.79%3.72%-28.73%
Change in YoY Net Profit Growth (%)0.00%-67.59%307.06%-226.62%97.08%-45.35%-123.20%16.61%602.03%-562.07%-32.45%

Motilal Oswal Financial Services Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:31%
5 Years:24%
3 Years:25%
TTM:60%
Compounded Profit Growth
10 Years:42%
5 Years:53%
3 Years:22%
TTM:96%
Stock Price CAGR
10 Years:30%
5 Years:37%
3 Years:49%
1 Year:215%
Return on Equity
10 Years:22%
5 Years:24%
3 Years:25%
Last Year:33%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital151414141415151515151515
Reserves1,2031,1561,2811,4221,7722,8713,0393,0714,4475,6596,2378,717
Borrowings007952,5895,0675,3235,1584,6275,6936,15210,27813,787
Other Liabilities5556778551,0641,5862,2022,1492,3703,8875,0336,4199,252
Total Liabilities1,7731,8482,9455,0908,43910,41110,36010,08414,04116,86022,94931,771
Fixed Assets311307300292294300302333350357466603
CWIP000000000000
Investments1482938141,2311,7672,8072,6863,0883,9224,6854,7876,501
Other Assets1,3141,2481,8313,5666,3787,3047,3726,6629,76911,81817,69624,667
Total Assets1,7731,8482,9455,0908,43910,41110,36010,08414,04116,86022,94931,771

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow162.00213.00141.00-539.00430.00-4.00-4.00902.00808.00-3.00-4.00-9.00

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

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters70.48%70.40%69.50%69.50%69.57%69.46%69.68%69.66%69.53%69.39%69.16%69.04%
FIIs9.33%10.24%10.08%9.80%9.29%7.35%6.47%6.41%6.29%6.48%6.73%6.46%
DIIs2.04%2.87%3.63%4.02%5.01%5.95%6.28%6.11%6.29%6.76%6.94%6.06%
Public18.14%16.50%16.78%16.67%16.12%17.22%17.58%17.84%17.90%17.36%17.16%18.42%
No. of Shareholders92,43073,10370,57591,81666,60570,23069,66368,94463,58361,73267,2311,35,984

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 Fund7,618,6431.89915.085,6962024-10-04133654.27%
HDFC Large and Mid Cap Fund - Regular Plan500,0000.4560.065,6962024-10-048678.09%
HDFC Multi Cap Fund420,0000.550.455,6962024-10-047273.6%
Parag Parikh ELSS Tax Saver Fund230,2151.1827.655,6962024-10-043941.7%
Helios Flexi Cap Fund82,0661.589.865,6962024-10-041340.77%
Nippon India Nifty Smallcap 250 Index Fund22,6130.332.725,6962024-10-04297%
Motilal Oswal Nifty Smallcap 250 Index Fund13,8170.321.665,6962024-10-04142.57%
SBI Nifty Smallcap 250 Index Fund10,8020.321.35,6962024-10-0489.64%
ICICI Prudential Nifty Smallcap 250 Index Fund5,6960.320.685,6962024-10-040%
HDFC NIFTY Smallcap 250 ETF2,9220.320.355,6962024-10-04-48.7%

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.)588.51424.83382.34306.12210.86
Book Value[Incl.RevalReserv]/Share (Rs.)588.51424.83382.34306.12210.86
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 (%)43.1613.3220.5223.6412.70
Return On Assets (%)7.664.047.738.821.81
Long Term Debt / Equity (X)0.001.110.690.780.91
Total Debt / Equity (X)0.591.641.081.281.50
Asset Turnover Ratio (%)0.250.170.200.220.15
Current Ratio (X)1.382.412.422.352.37
Quick Ratio (X)1.382.412.422.352.37
Dividend Payout Ratio (NP) (%)0.0015.916.625.7370.80
Dividend Payout Ratio (CP) (%)0.0014.976.385.5258.20
Earning Retention Ratio (%)0.0084.0993.3894.2729.20
Cash Earning Retention Ratio (%)0.0085.0393.6294.4841.80
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.)18007.7610493.5513829.2611431.5110675.76
EV / Net Operating Revenue (X)2.552.513.223.154.53
EV / EBITDA (X)4.365.536.465.6513.03
MarketCap / Net Operating Revenue (X)3.512.163.022.533.13
Retention Ratios (%)0.0084.0893.3794.2629.19
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 October 6, 2024 is: ₹751.17

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 October 6, 2024, Motilal Oswal Financial Services Ltd is Undervalued by 3.32% compared to the current share price ₹727.00

Intrinsic Value of Motilal Oswal Financial Services Ltd as of October 6, 2024 is: ₹1,196.63

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 October 6, 2024, Motilal Oswal Financial Services Ltd is Undervalued by 64.60% compared to the current share price ₹727.00

Last 5 Year EPS CAGR: 59.30%

*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 (169.77 cr) and profit (215.23 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 (4,955.75) compared to reserves (3,406.25), 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: 43.16% (Industry Average ROCE: 15.24%)
      • 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: 17.07%)
      • 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: 1.38
      • 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: 15.6 (Industry average Stock P/E: 66.48)
      • 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: 0.59
      • 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 fair value of Motilal Oswal Financial Services Ltd?

The latest fair value of Motilal Oswal Financial Services Ltd is ₹751.17.

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

The Market Cap of Motilal Oswal Financial Services Ltd is 43,531 Cr..

What is the current Stock Price of Motilal Oswal Financial Services Ltd as on 06 October 2024?

The current stock price of Motilal Oswal Financial Services Ltd as on 06 October 2024 is ₹727.

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

In FY 2024, the High / Low of Motilal Oswal Financial Services Ltd stocks is 829/222.

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

The Stock P/E of Motilal Oswal Financial Services Ltd is 15.6.

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

The Book Value of Motilal Oswal Financial Services Ltd is 147.

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

The Dividend Yield of Motilal Oswal Financial Services Ltd is 0.48 %.

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