Motilal Oswal Financial hits 52-week high after brokerage reports strong Q1 results with two-fold surge in margin

Motilal Oswal Financial Services shares scaled a 52-week high on Friday after the brokerage reported a strong set of quarterly numbers. The Motilal Oswal Financial Services stock — traded on the bourses with the symbol MOTILALOFS — gained by as much as Rs 72.2 or 8.8 per cent to Rs 888.7 apiece on BSE, surpassing a 52-week peak touched this week.  

After market hours on Thursday, Motilal Oswal reported a 3.2 times jump in consolidated net profit to Rs 526.9 crore for the quarter ended June 2023 compared with the corresponding period a year ago.

Its revenue almost doubled to Rs 1,500 crore for the first quarter of the current financial year from Rs 754 crore a year ago, according to a regulatory filing.  

The brokerage's margin — a key measure of profitability — more than doubled to 55.9 per cent from 26.7 per cent a year ago. 

The company reported Rs 838.3 crore in earnings before interest, taxes, depreciation and ammortisation (EBITDA) as against Rs 201 crore for the year-ago period. 

"Our capital market business has demonstrated remarkable performance, reporting an all-time high quarterly profit and strengthening our retail market position in cash and F&O segments to 6.2 per cent and 7.2 per cent respectively. We continue to focus on our strategy to diversify our businesses towards linear sources of earnings," said  Motilal Oswal, MD and CEO, Motilal Oswal Financial Services. 

In a separate development, Motilal Oswal Financial Services' board approved the transfer of its broking and distribution business into subsidiary Glide, and the demerger of the wealth business under its subsidiary Motilal Oswal Wealth into Motilal Oswal Financial Services. 

Glide and Motilal Oswal Wealth are wholly-owned subsidiaries of Motilal Oswal Financial Services. 

What to do with Motilal Oswal Financial shares?

Zee Business analyst Kushal Gupta has a 'buy' call on the stock with a target price of Rs 840 and a stop loss at Rs 805. Check out Zee Business analysts' other recommendations today

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