Motilal Oswal Financial Services share price: Add Motilal Oswal Financial Services, price target Rs 1035: HDFC Securities

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Securities added a call to Motilal Oswal Financial Services Ltd. with a target price of Rs 1035. The current market price of . is Rs 775.35.

The period given by the analyst is one year when the price of Motilal Oswal Financial Services Ltd. can achieve the set goal.

Motilal Oswal Financial Services Ltd., incorporated in 2005, is a mid-cap company (having a market capitalization of Rs 11401.08 Crore) operating in the NBFC sector.

Major products/revenue segments of Motilal Oswal Financial Services Ltd. includes brokerage and commission income, financial services income, interest, commissions, other operating income, dividend income and rental income for the year ending March 31, 2021.

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For the quarter ended 31-03-2022, the company reported consolidated total revenue of Rs 1055.23 Crore, up by 2.02% from last quarter Total revenue of Rs 1034.34 Crore and down by -7.74% compared to the same quarter of last year Total revenue of Rs 1143.78 Crore. The company reported net profit after tax of Rs 301.87 Crore last quarter.

Investment rationale
MOFS printed pure brokerage revenue (including NII on the MTF book) in line with the estimate, pushing Capital Markets APAT to INR 1.5 billion (-11% QoQ). AMC’s (ex-WM) APAT pace was driven by strong pull from IBEF-IV in the private equity sector; however, the portfolio management business continues to face redemptions. The APAT drag was driven by a shortfall in NII and Treasury revenue and, primarily due to consolidation in capital markets, resulted in a sequentially stable APAT (ex MOHFL) at 2.2 billion of INR. It increases EPS estimates for FY23E (8.4%) / FY24E (6.1%) to account for the strong pull in PE business since the launch of IBEF-IV. It maintains ADD with a revised target price of INR 1,035 (15x/23x Sep-23E brokerage/AMC APAT + 0.6x/0.5x for Sep-22E treasury/MOHFL).

Promoter/Fii Holdings
The promoters held 69.5% of the company’s capital as of March 31, 2022, while the FIIs held 10.08% and the DIIs 3.63%.

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