Fact based stock research
Motilal Oswal Financial Services (NSEI:MOTILALOFS)

INE338I01027

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Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

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Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Motilal Oswal Financial Services stock research in summary

motilaloswal.com

ANALYSIS: With an Obermatt Combined Rank of 39 (worse than 61% compared with investment alternatives), Motilal Oswal Financial Services (Diversified Capital Markets, India) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Motilal Oswal Financial Services are low in value (priced high) with a consolidated Value Rank of 5 (worse than 95% of alternatives). But they show above-average growth (Growth Rank of 71) and are safely financed (Safety Rank of 65, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 39, is a hold recommendation based on Motilal Oswal Financial Services's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Motilal Oswal Financial Services exhibits low value (Obermatt Value Rank of 5), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 71). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 65) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	5
Growth Rank	71
Safety Rank	65
Combined Rank	39

Country	India
Industry	Diversified Capital Markets
Index
Size class	Medium

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Research History: Motilal Oswal Financial Services

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	35	29	5
GROWTH
GROWTH	91	39	85	71
SAFETY
SAFETY	41	70	75	65
SENTIMENT
SENTIMENT	n/a	91	95	^new
360° VIEW
360° VIEW	n/a	83	92	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 31-Mar-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Motilal Oswal Financial Services is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	69	35	29	5
GROWTH
GROWTH	91	39	85	71
SAFETY
SAFETY	41	70	75	65
COMBINED
COMBINED	85	45	81	39

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Motilal Oswal Financial Services the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 5 (worse than 95% compared with alternatives), Motilal Oswal Financial Services shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Motilal Oswal Financial Services. Price-to-Sales is 13 which means that the stock price compared with what market professionals expect for future profits is higher than 87% of comparable companies, indicating a low value concerning Motilal Oswal Financial Services's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 7, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Motilal Oswal Financial Services. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 17 and Dividend Yield, which is lower than 99% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 5, is a sell recommendation based on Motilal Oswal Financial Services's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Motilal Oswal Financial Services? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Motilal Oswal Financial Services? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Motilal Oswal Financial Services may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	71	36	49	13
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	97	37	39	17
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	31	34	30	7
DIVIDEND YIELD
DIVIDEND YIELD	24	39	29	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	69	35	29	5

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Motilal Oswal Financial Services; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 71 (better than 71% compared with alternatives), Motilal Oswal Financial Services shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Motilal Oswal Financial Services. Profit Growth has a rank of 60 which means that currently professionals expect the company to grow its profits more than 60% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 53, and Stock Returns has a rank of 100 which means that the stock returns have recently been above 100% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 39 (61% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 71, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	85	6	12	39
PROFIT GROWTH
PROFIT GROWTH	n/a	6	94	60
CAPITAL GROWTH
CAPITAL GROWTH	n/a	63	72	53
STOCK RETURNS
STOCK RETURNS	69	81	97	100
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	91	39	85	71

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Motilal Oswal Financial Services.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 65 (better than 65% compared with alternatives), the company Motilal Oswal Financial Services has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Motilal Oswal Financial Services is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Motilal Oswal Financial Services. Leverage is at a rank of 64, meaning the company has a below-average debt-to-equity ratio. It has less debt than 64% of its competitors. Liquidity is also good at a rank of 74, meaning the company generates more profit to service its debt than 74% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 37, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 63% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 65 (better than 65% compared with alternatives), Motilal Oswal Financial Services has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Motilal Oswal Financial Services. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Motilal Oswal Financial Services and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	37	68	64	64
REFINANCING
REFINANCING	45	35	47	37
LIQUIDITY
LIQUIDITY	47	71	69	74
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	41	70	75	65

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Motilal Oswal Financial Services and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	86	91	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	64	64	^new
MARKET PULSE
MARKET PULSE	n/a	70	74	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	91	95	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Motilal Oswal Financial Services.
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