Tulsian told CNBC-TV18, "Motilal Oswal Financial Services has indicated profit of pat of about Rs 100 crore plus that means that would be for FY08 EPS could be 35-36. If I take that above 900 that gives me about P/E multiple 25, at 975 P/E multiple of about 27-28. Definitely upside looks very limited because maybe crossing Rs 1000 would be a bit difficult for the stock and if you take the comparative valuation with the peers I think it slightly looks stretched because their existing business composition is more of broking and the allocation of Rs 110 crore, which they have made from IPO proceed is also for the margin financing, which will ultimately be increasing their brokerage income and it is infact very much required for the company to increase their non broking business."
He further added, "They have recently ventured into investment banking and all that I do not know how much fee base income could contribute to their profitability going forward for FY08 if they are able to bring it down the brokerage percentage obviously it will be pursued positively by the market but if I take the present scenario indications given by the management and expected EPS of 35-36. I think the share is fairly priced and upside is limited and it could settle around Rs 900-930 level may be one month down the line or may be in the next 15 days or so."
