The shares of the financial service provider gained up to 2.3 percent after Tata Mutual Fund bought 3.75 lakh equity shares in the company.
With a market capitalization of Rs 56,726.88 crore, the shares of Motilal Oswal Financial Services Ltd were trading at Rs 947.70 per share, increasing around 1.81 percent as compared to the previous closing price of Rs 930.85 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after Tata Mutual Fund bought 3.75 lakh equity shares which is equivalent to 0.06 percent in the company at an average price of Rs 933.30 apiece, however, Motilal Oswal Foundation offloaded 3,75,000 equity shares at the same average price. The transaction value of this deal is Rs 35 crore.
Financial performance:-
Looking into the company’s financial performance, revenue jumped by 71 percent from Rs 1,655 crore in Q1FY24 to Rs 2,838 crore in Q1FY25. During the same duration, net profit climbed by 110 percent from Rs 532 crore to Rs 1,122 crore.
Remarkable return:-
The stock has delivered returns of 58.13 percent in the last six months and a multi-bagger return of 279.48 percent in a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 3.79 lakh annually.
Segmental Performance:-
In Q2FY25, Wealth Management reported a net revenue of ₹634 Cr, up 53% YoY, with PAT rising 71% to ₹225 Cr. Client acquisition reached 2 lakh, and assets under advice grew by 88% to ₹2,94,000 Cr.
Asset & Private Wealth Management showed strong gains with net revenue of ₹490 Cr, up 52% YoY, and PAT increasing 63% to ₹213 Cr. Asset Management AUM reached ₹1,10,769 Cr, and Mutual Fund AUM rose 124% to over ₹80,000 Cr.
In Capital Markets, revenue grew 52% to ₹174 Cr, and Investment Banking completed 22 deals. Housing Finance AUM increased to ₹4,233 Cr with a 13% YoY rise, while NPAs remained low with a Gross NPA of 1.3%.
Market insight:-
With household savings projected to grow from $14 trillion to $126 trillion in 25 years, financial services are set for expansion. The firm aims to double distribution manpower over two years, launch monthly mutual fund products, and schedule private equity and real estate exits.
Management Outlook:-
Management remains optimistic about sustaining strong growth and top earnings ratios across segments, anticipating minimal impact from new regulations. Investment in relationship managers will enhance productivity, especially in wealth and housing finance, ensuring resilience and consistent service delivery amidst evolving market dynamics.
Company Snapshot:-
Motilal Oswal Financial Services Limited is a financial services firm headquartered in India that uses integrated technologies. The company provides various services, including retail and institutional brokerage and financial product distribution. Customers include residents and non-residents, Hindu undivided families (HUFs), corporations, and others.
Written by:- Abhishek Singh
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