Buy Motilal Oswal Financial Services; target of Rs 1597: ICICI Securities

ICICI Securities's research report on Motilal Oswal Financial Services

Motilal Oswal Financial Services (MOSL) has maintained a strategy of riding on the structural trend in financialisation over the years. The phygital strategy bodes well considering the franchise strength and the possible premiumisation opportunities. Our constructive stance on the stock has been based on individual growth levers in all business segments (market share improvement in broking, improved fund performance in AMC, increase in RM efficiency in wealth management, traction in PE and improving RoE in affordable housing business) at attractive valuations. The stock has given ~82% returns over the last year and we expect the tailwinds to continue, considering the capital market momentum in the near term; long-term structural tailwinds remain intact. Maintain BUY.

Outlook

We maintain BUY on MOFSL with a revised target price of INR 1,597 (earlier INR 1,079) based on FY26E SoTP valuations basis 15x P/E on core PAT in broking and distribution/AMC/wealth management business and /PE&RE/investment banking.