On Anil Singhvi’s show, Raamdeo Agrawal says Housing Finance business to see turnaround

Zee Business Managing Editor Anil Singhvi spoke to Raamdeo Agrawal, Chairman & Co-Founder, Motilal Oswal Financial Services about company's results. Singhvi highlights that the broking business saw strong growth for Motilal Oswal. Revenue of the company grew 52% (YoY) and 19% (QoQ) and Asset Management Business grew 40%.

Raamdeo Agrawal said that he himself was surprised with such strong results of the company. He said the company has 4 businesses - Broking, Asset Management, Housing Finance and Treasuries. He said profit moved up significantly this year and this will not continue going forward. Broking Business is up by 84% for the quarter and 61% when compared to last year. Treasury loss of Rs 300 cr – Rs 400 cr has depressed the profits of the company though.

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Raamdeo Agrawal said that the Housing Finance initiative didn’t do well for the last 2 to 3 years. It has stabilized now and did 18 cr profit. This business will do well from here on. Profit compositions may change going forward. I-Banking, Housing Finance and Private Equity Business may do better going forward too.

मोतीलाल ओसवाल फाइनेंशियल सर्विसेज को होम फाइनेंस में जल्द ग्रोथ का अनुमान..#NewsParViews में कंपनी के चेयरमैन रामदेव अग्रवाल ने कहा- अगले साल ऑपरेटिंग परफॉर्मेंस में दिखेगा सुधार#StockMarket #Investment @AnilSinghvi_ @MotilalOswalLtd @Raamdeo pic.twitter.com/6nXUyPDVHm

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Raamdeo Agrawal said that yesterday's market turnover was 100 lk cr due to expiry. This shows that the turnover in markets is extremely high. New clients and stock market boom will ensure that the broking business will do well for the company. The growth will not be similar to what company saw last year. I-Banking will see a strong turnaround and can generate profits of Rs 25 cr – 50 cr. He said that Housing Finance Business will see a strong turnaround and can generate good profits from here on.

Raamdeo Agrawal said that New Investors are welcome in the stock market and they will do extremely well. Investing money for a longer horizon of 3 years to 5 years to 10 years will see good returns. He said that the bigger the horizon, the bigger will be the profitability. Power of compounding and patience will give strong returns to investors. He said that speculating in the markets could be dangerous and can lead to losses. He recommends being an investor and not a speculator in the stock markets.

Raamdeo Agrawal said that markets are indeed confusing and difficult to understand. Whether 2nd wave, 3rd wave, 4th wave will be there and will this remain permanently? It is difficult to understand whether the market will skyrocket from here on due to massive liquidity boom, low interest rates and global consumption boom or Corona issues will create problems for the market.

Raamdeo Agrawal said that due to high uncertainty in the markets, he will remain cautious. He is completely invested in markets and believes some sectors will do well despite covid. 
As far as investors are concerned, their portfolios should be tilted towards sectors which are seeing strong traction. He said due to disruption in small companies or unorganised markets, large companies and organised companies are seeing huge benefits.