Check Before You Invest : Motilal Oswal Financial Services Ltd

Snapshot

Q.1 Which industry/sub-sector does Motilal Oswal Financial Services Ltd belong to?

Motilal Oswal Financial Services Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.

Q.2 Is Motilal Oswal Financial Services Ltd a good quality company?

Motilal Oswal Financial Services Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Motilal Oswal Financial Services Ltd undervalued or overvalued?

Motilal Oswal Financial Services Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Motilal Oswal Financial Services Ltd a good buy now?

Motilal Oswal Financial Services Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Motilal Oswal Financial Services Ltd?

Motilal Oswal Financial Services Ltd revenue growth is 17.5% for FY-2025, which is below its 5-year CAGR of 36.99%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Motilal Oswal Financial Services Ltd?

Motilal Oswal Financial Services Ltd Return on capital employed is 17.8% for FY-2025, which is in line with its 5-year historical median of 17.8%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Motilal Oswal Financial Services Ltd?

Motilal Oswal Financial Services Ltd Return on Asset is 6.1%, which is below its 5-year historical median of 6.8%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Motilal Oswal Financial Services Ltd?

Motilal Oswal Financial Services Ltd Return on equity is 21.7% for FY-2025, which is in line with its 5-year historical median of 21.7%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Motilal Oswal Financial Services Ltd?

Motilal Oswal Financial Services Ltd Cash conversion cycle is -629 days, above its 5-year historical median of -700 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.23	0.25
ROE	21.7	21.7
ROCE	17.8	17.8
Cash Conversion Cycle	-629 days	-700 days

Q.6 Gross Profit margin of Motilal Oswal Financial Services Ltd?

Motilal Oswal Financial Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 33.9% for FY-2025, which is in line with its 5-year median of 35%, indicating stable margins.

Q.7 Operating Profit Margin of Motilal Oswal Financial Services Ltd?

Motilal Oswal Financial Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 46.71% for FY-2025, which is in line with its 5-year median of 46.71% indicating stable margins.

Q.8 Net Profit Margin of Motilal Oswal Financial Services Ltd?

Motilal Oswal Financial Services Ltd Net Profit Margin is 25.96% for FY-2025, is below with its 5-year median of 27.4%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	33.9	35
Operating Profit Margin	46.71	46.71
Net Profit Margin	25.96	27.4

Q.9 Debt to Equity ratio of Motilal Oswal Financial Services Ltd?

Motilal Oswal Financial Services Ltd Debt-to-Equity ratio is 1.25, which is above with the industry average of 0.59, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Motilal Oswal Financial Services Ltd?

Motilal Oswal Financial Services Ltd Debt to cash flow from operations is 14.35, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Motilal Oswal Financial Services Ltd?

Promoters hold 67.54% of the Motilal Oswal Financial Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Motilal Oswal Financial Services Ltd vs industry peers?

Motilal Oswal Financial Services Ltd revenue CAGR is 36.99%, compared to the industry median CAGR of 22.84%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	17.5	22.8
Gross Profit Growth	-2.6	21.9
Operating Profit Growth	11.3	NAN
Net Profit Growth	-6.6	18.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.23	0.14
ROE	21.7	21.5
ROCE	17.8	17
Cash Conversion Cycle (days)	-628.95	-48

Valuation & price assessment

Q.1 Stock return of Motilal Oswal Financial Services Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 27.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	27.2%	37.7%	74.1%	25.9%

Q.3 Valuation ratios of Motilal Oswal Financial Services Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	52.28	19.67	20.01
Price to Book	6.07	3.53	1.64
Price to Sales	10.22	5.67	5.20
EV to EBITDA	18.44	10.34	6.89

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