Motilal Oswal Financial Services Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (2.8x coverage).
• Motilal Oswal Financial Services's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Motilal Oswal Financial Services's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Motilal Oswal Financial Services's earnings are expected to grow significantly at over 20% yearly.
• Motilal Oswal Financial Services's earnings growth is expected to exceed the India market average.
• Motilal Oswal Financial Services's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Motilal Oswal Financial Services's earnings are expected to exceed the low risk growth rate next year.
• Motilal Oswal Financial Services's net income is expected to increase by more than 50% in 2 years time.
• Performance (ROE) is expected to be above the current IN Capital Markets industry average.
• An improvement in Motilal Oswal Financial Services's performance (ROE) is expected over the next 3 years.

Cons

• Motilal Oswal Financial Services is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• Motilal Oswal Financial Services's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Motilal Oswal Financial Services's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
• Motilal Oswal Financial Services's revenue growth is positive but not above the India market average.

health

Pros

• Motilal Oswal Financial Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Motilal Oswal Financial Services is profitable, therefore cash runway is not a concern.
• Motilal Oswal Financial Services is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (20.3%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.4x debt.
• Motilal Oswal Financial Services's cash and other short term assets cover its long term commitments.
• Low level of unsold assets.

Cons

• The level of debt compared to net worth has increased over the past 5 years (65.3% vs 148.2% today).
• Motilal Oswal Financial Services's level of debt (148.2%) compared to net worth is high (greater than 40%).

management

Pros

• The tenure for the Motilal Oswal Financial Services board of directors is about average.
• Motilal's remuneration is about average for companies of similar size in India.
• Motilal's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Motilal Oswal Financial Services management team is about average.

Cons

• Motilal Oswal Financial Services individual insiders have only sold shares in the past 3 months.

misc

Pros

Cons

• Motilal Oswal Financial Services is covered by less than 3 analysts.
• Motilal Oswal Financial Services has significant price volatility in the past 3 months.

past

Pros

• Motilal Oswal Financial Services's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Cons

• Motilal Oswal Financial Services's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Motilal Oswal Financial Services used its assets less efficiently than the IN Capital Markets industry average last year based on Return on Assets.
• Motilal Oswal Financial Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Motilal Oswal Financial Services's 1-year earnings growth is negative, it can't be compared to the IN Capital Markets industry average.

value

Pros

• Motilal Oswal Financial Services is good value based on expected growth next year.
• MOTILALOFS matched the Capital Markets industry (-21%) over the past year.

Cons

• Motilal Oswal Financial Services's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Motilal Oswal Financial Services's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Motilal Oswal Financial Services is overvalued based on assets compared to the IN Capital Markets industry average.
• Motilal Oswal Financial Services is overvalued based on earnings compared to the IN Capital Markets industry average.
• Motilal Oswal Financial Services is overvalued based on earnings compared to the India market.
• MOTILALOFS underperformed the Market in India which returned -14.5% over the past year.
• NSEI:MOTILALOFS is up 3% underperforming the Capital Markets industry which returned 8.7% over the past month.
• NSEI:MOTILALOFS is up 3% underperforming the market in India which returned 8% over the past month.