Check Before You Invest : Motilal Oswal Financial Services Ltd

Q: 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: 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 multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: 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. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 55, Historic Median: 19.87. Price to Book, Current: 6.38, Historic Median: 3.56. Price to Sales, Current: 10.75, Historic Median: 5.72. EV to EBITDA, Current: 19.65, Historic Median: 10.39

Q: 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

Q: 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: 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: 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: 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 its 5-year median of 27.4%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 33.9, Historic Median: 35. Operating Profit Margin (%), Current: 46.71, Historic Median: 46.71. Net Profit Margin (%), Current: 25.96, Historic Median: 27.4

Q: 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: 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.

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

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.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	55	19.87
Price to Book	6.38	3.56
Price to Sales	10.75	5.72
EV to EBITDA	19.65	10.39

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 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.3 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.4 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 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	0.23	0.25
ROE (%)	21.7	21.7
ROCE (%)	17.8	17.8
Cash Conversion Cycle	-629 days	-700 days

C: How much debt does the business have and is it at a sustainable level?

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 the industry average of 0.05, 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

D: Promoter shareholding and pledge status of Motilal Oswal Financial Services Ltd?

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)

E: How does Motilal Oswal Financial Services Ltd performance compare with that of its Peers?

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	40.7
Net Profit Growth (%)	-6.6	18.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	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.

	9Y	5Y	3Y	1Y
Share Price CAGR	27.2%	33%	74.5%	7.4%

Q.2 Valuation ratios of Motilal Oswal Financial Services Ltd vs historical?

The current P/E ratio of 55 is higher than its historical median of 19.87, indicating that the stock is trading above its historical average valuation.

Q.3 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	55	19.87	19.96
Price to Book	6.38	3.56	1.64
Price to Sales	10.75	5.72	5.31
EV to EBITDA	19.65	10.39	6.93

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Check Before You Invest : Motilal Oswal Financial Services Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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