Up 3.5 times in 1 year, MOFSL shares surge 10% to hit all-time high of Rs 775

Motilal Oswal Financial Services Ltd (MOFSL) Share Price: Motilal Oswal Financial Services shares soared as much as 12 per cent to register a record high on Monday, taking its one-year gain to more than 3.5 times. The stock of the Mumbai-based financial services company jumped by as much as Rs 82.1 - or 11.8 per cent - to Rs 775.4 apiece in intraday trade on BSE. 

In May, Motilal Oswal Financial Services announced the first bonus for its shareholders in the ratio of 3:1. Simply put, the corporate action led to the issuance of three free shares for every one share held by eligible shareholders.

Many analysts hold positive views on the broking businesses in India, with long-term growth prospects backed by the country's booming retail investor base. 

Here's how the stock fares among some of its peers: 

As of August 23, the stock trades at a trailing 12-month price-to-earnings multiple of 16.3 times, lower than a peer average of about 33 times. 

MOFSL Q1 FY25 Results

For the first quarter of the current financial year, Motilal Oswal Financial Services clocked a 67.4 per cent year-on-year jump in its consolidated net profit to Rs 881.9 crore with  54 per cent growth in revenue to Rs 2,312.3 crore. Revenue from its wealth management unit increased 64 per cent to Rs 1,053.2 crore and that from its capital market business increased 0.7 per cent to Rs 142 crore, according to a regulatory filing. 

MOFSL's management said the business is well geared to meet the varied client needs through its integrated wealth platform, bespoke research, a vast partner network of more than 8,800 external wealth managers, more than 2,000 internal advisors, and a large HNI client base

"We are well-positioned for this transformation. It is a strategic evolution that reflects our dedication to providing holistic, purpose-driven financial solutions, enabling us to better serve our clients and help them achieve their financial aspirations with confidence and clarity," said Motilal Oswal, MD and CEO of Motilal Oswal Financial Services. 

The financial services company acquired 1.5 lakh clients in the June quarter. 

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What analysts say

MOFSL shares have already surpassed a target of Rs 703 assigned by rival brokerage ICICI Securities earlier this month.

"MOSL has started transitioning from broking and distribution business towards wealth management with strategic objectives of enhancing client relationships, building deeper and more meaningful connections that position MOSL as trusted advisors and offering comprehensive financial solutions that extend beyond broking and align with clients' aspirations for wealth creation and reservation. As per the management, investors today are more informed and seek more than just transactional services. Investors now demand personalised investment advice that considers their long-term financial goals," noted ICICI Securities analysts in a research report dated August 8. 

This shift in investor and consumer behaviour signifies MOSL’s move towards deeper engagement in financial planning, which includes diverse asset classes and effective risk management. The transition to wealth management is not just a change in nomenclature, but a strategic evolution for the company," they wrote.

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