Motilal Oswal Financial Services Limited

Financial Services — Capital Markets · NSE

₹1,057.60−₹5.35 (−0.50%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by negative free cash flow.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Motilal Oswal Financial Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Motilal Oswal Financial Services Limited offers financial services in India. It operates through Wealth Management, Capital Markets, Asset and Private Wealth Management, Home Finance, and Treasury Investments segments.

IndustryCapital Markets

SectorFinancial Services

Employees12,459

Annual revenue₹8,209 Cr

How does it make money?

Turns over ₹8,209 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹40 left at the operating level before interest, tax and depreciation. Each of its 12,459 employees supports ₹65.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹65.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.7%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 17.2% and earnings to grow about 14.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.2%

Est. earnings growth+14.2%

Analysts5

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +115% while net margin moved -7% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+115%

Margin effect-7%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.38 — historically steadier than the index
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

78/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

63/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

32.6x

3Y Median

37.9x

40 monthly readings · mean 46.9x · range 15.4x–93.7x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 14% below its 3y median of 37.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 44% below the peer median of 58.4x.

vs. its own history

Fair

37.9x median over 40 months · -14%

vs. sector peers

Cheap

58.4x median of 3 peers · -44%

vs. generic bands

Fair

15x–35x

EV/EBITDA

24.2x

PEG

1.25

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 411% against revenue growth of 115% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 4.9 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 44% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 45.1% to 40.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 22% a year✓ 29.1% CAGR
Latest reported year was 23.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 38%✓ 40.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 13%✓ 14.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 37.9x✓ 32.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹63,771 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

32.6x

Fair

Fairly valued against the generic band

P/B Ratio

4.94x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹32.42

Profitable

Profitable on a per-share basis

ROE

14.5%

Moderate

Moderate capital efficiency

ROCE

18.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.66x

High

High leverage

Revenue Growth (YoY)

23.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

8.7%

Modest

Slow profit growth

Dividend Yield

0.57%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹6,160 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

17.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

51.3%

Good

Healthy core-business profitability

Net Margin

23.0%

Good

Strong bottom-line conversion

Current Ratio

1.19

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.38

Defensive

Steadier than the market

52W Range Position

92%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

1028.9 / 999.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,819 Cr	₹5,174 Cr	₹6,432 Cr	₹8,209 Cr	+29.1%
EBITDA	₹1,724 Cr	₹2,651 Cr	₹3,288 Cr	₹3,304 Cr	+24.2%
EBITDA Margin	45.1%	51.2%	51.1%	40.2%	—
PAT (Net Profit)	₹932 Cr	₹2,441 Cr	₹2,502 Cr	₹1,869 Cr	+26.1%
EPS	₹15.67	₹10.18	₹41	₹30.46	+24.8%
ROE	14.9%	28.0%	22.6%	14.5%	—
ROCE	18.0%	31.6%	26.9%	18.1%	—
Total Debt	₹10,276 Cr	₹13,746 Cr	₹14,732 Cr	₹21,255 Cr	+27.4%
Free Cash Flow	-₹3,212 Cr	-₹500 Cr	₹930 Cr	-₹6,160 Cr	—

🟢 Revenue has grown at 29.1% a year over 3 years.

🟢 EBITDA has grown at 24.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 45.1% to 40.2% over 3 years (-4.9 pts).

🟢 PAT (Net Profit) has grown at 26.1% a year over 3 years.

🟢 EPS has grown at 24.8% a year over 3 years.

🟡 ROE has held roughly flat at 14.5% over 3 years.

🟡 ROCE has held roughly flat at 18.1% over 3 years.

🔴 Total Debt has grown at 27.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹43,468 Cr

Total Liabilities

₹30,516 Cr

Cash & Equivalents

₹5,161 Cr

Operating Cash Flow

-₹6,071 Cr

Capex

-₹89 Cr

Shareholding (proxy)

Institutional Holding

29.2%

Insider Holding

52.7%

Corporate Actions

Dividend Rate

₹6

Ex-Dividend Date

30 Jan 2026

Analyst Consensus

Recommendations

5 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,120.8

+6.0% vs CMP

Target Range

₹1,024 – ₹1,250

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

2 mixed4 general

Motilal Oswal Financial Services (MOTILALOFS) Share Price rises 2.21% today

Univest, 15 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Motilal Oswal Financial Services (NSEI:MOTILALOFS) Stock Price

Simply Wall Street, 12 Oct

Buy Jio Financial Services; target of Rs 300: Motilal Oswal

Moneycontrol.com, 16 Oct

Motilal Oswal Q1FY27 Results: Treasury Gains Lift Profit, But Weak Core Performance Sends Stock Down Over 9%

India Infoline, 24 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Motilal Oswal keeps INR 300 target for Jio Financial Services stock

ad-hoc-news.de, 16 Oct

Motilal Oswal sees 4 factors boosting risk-reward after market’s sharp fall from 2024 high, lists 27 stock

The Economic Times, 28 Sept

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑