Shares of this brokerage firm jumped 12 percent in Wednesday’s trading session after reporting an increase in net profits by 193 percent YoY. The shares have delivered a multibagger return of 117 percent to its investors in six months.
With a market capitalization of Rs. 25,547 crores, the shares of Motilal Oswal Financial Services Ltd started Wednesday’s trading session on a lower note at Rs. 1,544 compared to its previous close of Rs. 1,550. During the trading session, the shares hit a high of Rs. 1,860, gaining around 12 percent, also recorded as the company’s fresh 52-week high.
Such a positive movement in the share price was observed after the company announced the October to December results. Lower expenses and higher revenue contributed to the sharp jump in profits, the revenue increased 8 percent from Rs. 1,646.68 crores during Q2FY24 to Rs. 1,784.31 crores in Q3FY24. In addition, the net profits zoomed by 24 percent from Rs. 533.49 crores to Rs. 661.49 crores during the same period.
Comparing these metrics on a YoY basis, the revenue increased by 65 percent from Rs. 1,075.52 crores during Q3FY23 to Rs. 1,784.31 crores in Q3FY24. On the other hand, the net profits magnified by 193 percent from Rs. 225.58 crores to Rs. 661.49 crores during the same timeframe.
The brokerage firm’s asset and wealth management businesses PAT for the quarter grew to Rs 79 crore, up 17 percent YoY. Furthermore, the company said it delivered the highest-ever quarterly capital market business profit of Rs 202 crore registering a gain of 44 percent YoY.
Along with the results, the company has declared an Interim Dividend on the Equity Shares of the company for the Financial Year 2023-24 at Rs. 14 per Equity Share of the face value of Rs. 1 each, which will be paid out of the profits of the company.
Looking at the important ratios, the return on equity (RoE) stood at 15.64 percent during FY22-23 and the return on capital employed was recorded at 12.96 percent during the same time horizon. Moreover, the net profit margin was at 22.23 percent during FY22-23.
Headquartered in Mumbai, Motilal Oswal Financial Services was incorporated in 2005. The company is a well-diversified financial services firm, that has a network spread over more than 550 cities and towns comprising more than 2,500 Business Locations operated by their Business Partners and more than 16 lakh customers.
Written By Vaibhav Patil
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