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The Motilal Oswal

Dear Readers,

 The below is a analysis of Motilal Oswal Company.

About the company:

Motilal Oswal Financial Services Ltd. was founded in 1987 as a small sub-broking unit, with just 2 people running the show. 

The company has a network spread over 550 cities and towns comprising 2500+ Business Locations operated by our Business Partners and us and 16,00,000+ customers

KEY POINTS 

Company Market Share:

Market share of Capital Markets 5.7%.

Market share of F&O stands at 3.2% 

Asset Under Management:

As on, July 2022:

Broking- ₹ 172 Bn

AMC- ₹ 434Bn

Home Finance - ₹ 35.5 Bn

Wealth AUM was at an all-time high in FY2022 at Rs 34,389 crore, up 36% YoY


Key insights

Active clients have registered 43% YoY growth at 0.93 mn as of June 2022. 83% of new clients acquired from Tier II & III cities.

IB revenue was down 98% QoQ due to muted market activity. 

MOHFL’s Geographic Reach - Presence across 106 locations in 12 states/uts

Over FY17-FY22, MOFSL’s consolidated revenue expanded at a 17% CAGR to INR43.2 billion.


Pros : 

1. The stock is trading at a price near to its intrinsic value

2. The company has shown consistent growth from past 5 years 

3. The compounded sales growth from past 10 years is 24% 

4. The return on equity of the stock is 19% 

5. If we see the shareholding pattern then several well known funds have invested there money in the company like parag parikh flexi cap and ICICI fund etc 


Cons

1. The company has Contingent liabilities of Rs.3,889 Cr.

2. The debt to equity ratio is 1.64 


You can also check graph of company profits, you will find out that it's increasing year after year.


p.s. it's not a stock recommendation, it's just for educational purpose. 

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