Motilal Oswal (MOSL) reported a mixed Q1FY21 performance wherein broking revenue was healthy but asset & wealth management saw pressure. The topline stayed flat at Rs. 633 crore (excluding MTM impact) while earnings increased 29% YoY to Rs. 167 crore, led by MTM gains on investments.
Valuation & Outlook
Presence in diversified businesses gives MOFSL an edge. Wealth, AMC business are seen curtailing cyclicality of business cycles. However, we expect Covid related stress may be seen in housing finance business. Broking volumes to stay steady though new regulatory regime related to upfront margins may act as a deterrent. Diversified business coupled with prudent management are expected to be key drivers for the stock. We estimate FY22E PAT at Rs. 523 crore. We value MOSL on SOTP basis, implying value of 20.9x FY22E PAT, giving a target price of Rs. 765. Maintain BUY.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_MOSL_Q1FY21.pdf
Shares of MOTILAL OSWAL FINANCIAL SERVICES LTD. was last trading in BSE at Rs.659.9 as compared to the previous close of Rs. 665.35. The total number of shares traded during the day was 1852 in over 318 trades.
The stock hit an intraday high of Rs. 670.35 and intraday low of 656. The net turnover during the day was Rs. 1228400.