3:1 Bonus Issue: Buy NBFC Stock That Gave Over 100% Returns In 2024, Target Rs 2,700; Ex-Bonus Next Week

Motilal Oswal Financial Services Ltd, a leading stock broker, witnessed buying sentiment this week ahead of its bonus issue in the ratio of 3:1 for which it will turn ex-bonus next week. In three consecutive trading sessions, the NBFC stock rose by a whopping 18%. YTD, the stock is up by 93%.

However, Motilal Oswal is among those stocks which have seen an extraordinary surge in six months to give triple-digit returns in 2024. In six months, Motilal's shares have soared by 103%, which means more than double from Rs 1,196.65 levels on December 8, 2023. All-time gains of Motilal is about 1,151%.

On June 7, the stock ended at Rs 2425.65 apiece, up by 5.70% ahead of its ex-bonus date. Its market cap is around Rs 36,205.47 crore. The stock's 52-week high and low are at Rs 2,677 apiece and Rs 660.65 apiece respectively.

Motilal Oswal Bonus Issue:

The NBFC has announced the issuance of Bonus Shares in the ratio of 3:1 i.e. 3 (Three) Equity Shares of the face value of Re. 1/- each for every 1 (One) existing Equity Share of the face value of Re. 1/- each held by the Shareholders of the Company as on Record Date.

The record date is fixed on Monday, June 10, 2024. This will be also the ex-bonus date of the stock.

BUY Motilal Oswal Share Price?

In its latest research report, Emkay Global said, "MOFS reported a robust operational and financial performance in Q4FY24, leading to a strong finish to the fiscal. While the performance of the Capital Markets segment was sturdy, the Asset and Wealth Management segment delivered a solid turnaround with the Housing Finance business gradually coming back on track."

Emkay maintained that MOFS is well positioned to capitalize on the favourable macros around its key business
segments, along with the strength to navigate any short-term volatility that may arise in the capital market-linked cyclical business.

On the valuation, Emkay's note said, "To reflect the Q4 developments, we adjust our FY25-26 estimates and reiterate our BUY rating on the stock, with revised up Mar-25E TP of Rs2,700/share (Rs2,200 earlier). Transfer of the Private Clients Group (PCG) business to Wealth Management (WM) from the Broking business provides the much-needed scale to the WM business as well as better value in the SOTP. Owing to the changes in segmental reporting by the company, our new segmental estimates are not comparable with our earlier estimates. "

Motilal Oswal Group possesses a legacy in equities for over 3 decades. Motilal Oswal Asset Management Company Ltd. (MOAMC) is registered with SEBI as the Investment Manager for Motilal Oswal Mutual Fund. It was incorporated on November 14, 2008. It provides Investment Management and Advisory Services to investors based within and outside India and has Mutual Funds, AIFs and Portfolio Management Services business.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.