Buy Midcap Cap Financial Services Stock, Target Price Rs 943/Share: ICICI Securities

Renowned broking firm ICICI Securities initiates Buy on Motilal Oswal Financial Services Ltd. (MOFSL) with a revised Target Price of Rs 943 apiece (Earlier Rs 900 apiece). According to the brokerage firm, the stock has a 28% upside potential, considering the given target price.

MOFSL is a midcap company from the Financial Services Sector. The company has a market capitalisation of Rs 10,970.58 Crore.

Capital market play; improvement levers exist in all segments

According to ICICI Securities, Motilal Oswal's (MOFSL) business performance improved in FY23 as seen from: (1) steady market share in derivatives, (2) improved mutual fund (MF) performance in select schemes, and (3) consistent growth with stable asset quality in the housing finance business, which also has a new MD now. Capital market momentum is likely to boost earnings and MTM value of investments.

Buy For a Target Price of Rs 943 apiece

The brokerage said, "We maintain BUY on MOFSL with a revised target price of Rs943 (earlier Rs900) based on FY25E SoTP valuations (earlier FY24E). We assign 12/15/15/5/5x P/E on core PAT for broking and distribution/AMC/wealth management/PE&RE/investment banking respectively. We assign 0.7/1.2x P/B for capital market/affordable housing lending, respectively, and 1x on fund-based FY23 AUM. We apply an overall holding company discount of 20%."

Stock Outlook

The last traded share price of MOFSL is Rs 741.50 apiece, up 1.01% from its previous close. Its previous close was 734.05, while the opening price on Tuesday was Rs 752.95 apiece on BSE. It traded its 52-week high on Sep 13, 2022, at Rs 823.65 apiece and 52-week low on Mar 27, 2023, at Rs 550.75 apiece, respectively.

The stock Jumped 3.32% in 1 week, and 8.56% in 2 weeks, respectively. It jumped 10.48% in 1 month, and 15.42% in 3 months, respectively. It has given 4.27% negative return in 1 year, and 24.89% in 2 years, respectively. It gave 7.30% positive return in 3 years, while in 5 years, it gave 9.88% negative return.

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.