Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    

| More

Maintain ADD on Motilal Oswal Financial Services - In-line performance - HDFC Securities

Posted On: 2020-08-04 09:37:43

Mr. Parikshit D Kandpal, Institutional Research Analyst, HDFC Securities.

(TP Rs 715, CMP Rs 671, MCap Rs 99bn)

A strong spurt in cash volumes (88.2% YoY) bolstered capital markets APAT 63.5% YoY (-5.9% vs. estimates), while a steep decline of 16.2% YoY in QAAUMs meant that AMC's APAT declined 33.3% YoY (-8.8% vs. estimates). Management enhanced provisions to 27.8% (+556bps QoQ) of GNPLs due to the potential COVID-19 impact, which resulted in MOHL reporting a 35.1% YoY lower APAT. Significant MTM gain (Rs 1.3bn, +272.3% YoY) on treasury resulted in MOFS (ex. MOHFL) APAT growth of 98.1%. We have mildly tweaked our estimates and retain ADD with an unchanged TP of Rs 715.

1QFY21 highlights: AMC (ex WM): Revenue/EBITDA/PAT were at Rs 1,255/410/292mn (-25.4/-38.2/-28.6% YoY). A recovery in markets, better performance by MOFS' funds and launch of passive funds resulted in a healthy inflow of Rs 3.2bn. Lockdown impacted new account openings for the PMS business. Capital Markets (in. WM) reported revenue/EBITDA/PAT of Rs 3,659/1,168/574mn (+21.9/26.4/61.2% YoY). Broking ADTVs grew 50.8/3.6% YoY/QoQ with cash share improving 223/224bps YoY/QoQ to 11.2%; cash volumes increased 88.2% YoY. It also resulted in blended yields improving 0.2/0.3bps YoY/QoQ to 1.1bps. Distribution AUM improved 13.3% QoQ to Rs 102bn as equity markets recovered. Management has provided ~Rs 0.7bn (post-tax) on account of negative price settlement of customers' crude oil derivative positions. Regulatory changes requiring the upfront collection of margins may result in lower volumes, and this remains a risk for the industry. Treasury reported MTM gain on investments (mainly equity MFs) of Rs 1.3bn. At MOHFL the loan book declined to Rs 36.9bn (8th consecutive quarter decline) as disbursements remained muted at just Rs 0.24bn/quarter. NNPA was at Rs 1.3% (-10bps QoQ) as management provided additional coverage in light of COVID-19. Management explained that ~26% of borrowers had opted for a moratorium, but collection efficiency had improved in Jun/July-20.

Outlook: The AMC business is showing traction despite a challenging environment. The broking business is expected to do well over FY21E as volumes continue to show strong traction; however, regulatory changes on an upfront collection of client margins pose as key risks.

Shares of MOTILAL OSWAL FINANCIAL SERVICES LTD. was last trading in BSE at Rs.665.3 as compared to the previous close of Rs. 671.15. The total number of shares traded during the day was 2545 in over 411 trades.

The stock hit an intraday high of Rs. 674.95 and intraday low of 663.1. The net turnover during the day was Rs. 1699232.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

HeidelbergCement India - Play on better priced Central India; initiate with BUY - ICICI Securities

Healthcare - Diagnostics: Multiple tailwinds likely to emerge - ICICI Securities

Mazagon Dock Shipbuilders Ltd - IPO Review - ICICI Securities

Persistent Systems - 28th September 2020 - Angel Broking

Canara Bank - 28th September 2020 - Angel Broking

Subscribe to UTI Asset Management Company Limited - IPO Note - Angel Broking

Multiplex Sector - Mr. Jyoti Roy - DVP - Equity Strategist, Angel Broking Ltd

Sale of Sequent stake to Strides Pharma - Angel Broking

Subscribe to Mazagon Dock Shipbuilders Ltd - IPO Note - Angel Broking

JSW Energy - First big renewable step - ICICI Securities

V-MART Retail - Best play in value fashion segment; initiating with BUY - ICICI Securities

Gas sector - New winners and losers likely on policy changes in gas sector - ICICI Securities

Mazagon Dock Shipbuilders Limited - IPO Note - Geojit

UTI Asset Management Company Limited - IPO Note - Geojit

Preview on RBI Monetary Policy - Oct 2020 - Shanti Ekambaram

Rollover Report for September 2020 - October 2020: Angel Broking

Covid Recovery Pulse - Sep 25, 2020 - ICICI Securities

Quick Comment - Suven Pharmaceuticals - ICICI Securities

Derivatives Strategy - Sep 25, 2020 - Positional Option - ICICI Securities

Gladiator Stocks - Ramco Cement - ICICI Securities

IPO Review - UTI Asset Management Company - ICICI Securities

Stock of the Day - Zensar Technologies - Sep 25, 2020 - Angel Broking

Accenture Q4FY2020 Result - Angel Broking

Granules India receives ANDA approval - Angel Broking

Zydus Cadila receives US FDA approval - Angel Broking

Cipla - ANDA approval - Mr. Yash Gupta - Equity Research Associate, Angel Broking Ltd

Mindspace REIT - Mr. Yash Gupta - Equity Research Associate, Angel Broking Ltd

UTI AMC - IPO - Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

Balkrishna Industries - Growth momentum continues - ICICI Securities

Rollover Analysis (September 25): Nifty starts October series with low OI amid high volatility

Derivatives View (September 25): Sell Bank Nifty in range of 20650-20750 - ICICI Securities

Rollover Analysis - Sept 20: Selling climax on expiry as markets crumble - YES Securities

Zydus Wellness - Leadership in niche categories; initiate at BUY - ICICI Securities

Power - Setting the stage - ICICI Securities

Company Update - Elgi Equipments - ICICI Securities

Nano Nivesh - The Anup Engineering - ICICI Securities

RBI OMO announcement of Rs. 10000 crore - Angel Broking

TCS deal win - Sep 24, 2020 - Angel Broking

View on Pre-Monetary Policy by Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank

US FDA approval to Zydus Cadila - Angel Broking

HDFC Securities Institutional Research Desk: Cement Sector Thematic - Spotting the sweet spot

Bharat Forge - Expectation hurdle remains steep - ICICI Securities


Mutual Fund Review - September, 2020 - ICICI Securities

UTI AMC announces IPO date - Angel Broking

Asian Paints - Mr. Amarjeet Maurya - AVP - Mid Caps, Angel Broking Ltd

Britannia Industries - Mr. Amarjeet Maurya - AVP - Mid Caps, Angel Broking Ltd

Hexaware Technologies (Not Rated): Hexaware accepts 475/share as final delisting price - ICICI Securities

CAMS IPO - Day 2 Subscription - Angel Boking

Chemcon Speciality Chemicals - IPO subscribed 12.62 times on second day - Angel Broking

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019