Motilal Oswal share price jumps over 4% as Emkay Global initiates coverage with a ‘Buy’ call, sees 26% upside
₹1,655.00 apiece on the BSE. Emkay Global initiated coverage on Motilal Oswal Financial Services (MOFSL) with a ‘Buy’ rating and a March 2025 target price of ₹2,000 per share, implying an upside of 26.5% from Wednesday’s closing price.
MOFSL’s businesses are centered on the three broad areas of Capital Markets, Asset & Wealth Management, and Housing Finance. And 70% of its consolidated net worth is in the form of treasury investments (Equity, MF, and alternates), which Emkay Global believes provides an added safety margin to valuations of core operating businesses.
Also Read: Reliance share price up 45% in last one year. Is it time to book some profit? Here’s what experts say “While volatility is part & parcel of any equity-linked story, MOFSL has built its business model around the economic moats of brand, reach and people, and has diversified its offerings well to capture a large part of customers’ wallet in their wealth creation journey," Emkay Global Financial Services said in a report.
Moreover, the diversification of its businesses has led to considerably reduced volatility in revenue. A wide array of offerings coupled with brand and reach across the country allow MOFSL to capture a larger wallet share of India’s mass-affluent ultra-high-net-worth individuals (UHNI) population in imminent decades, as per Emkay Global.
MOFSL has clocked net-worth CAGR of 17%, 22%, and 22% in FY08, FY14, and FY19, respectively, even after paying around 30% of operating net profit in dividends and buybacks, and without any capital raise post its IPO in FY08. Also Read: BSE share price jumps 8% after Investec upgrades stock to ‘Buy’, sees 38% upside potential Emkay believes this stands as the real testament to its economic moat, as
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