HDFC Securities bullish on Motilal Oswal Financial has recommended buy rating on the stock with a target price of Rs 633 in its research report dated May 13, 2020.
HDFC Securities' research report on Motilal Oswal Financial
For 4QFY20, broking segment PAT was hit by expansion costs and declined 7.8% QoQ, while steep MTM hit on AUMs hit the AMC as PAT declined 12.9% QoQ. Management sold bad loans to reduce NPLs, while slippages remained low resulting in the housing finance business delivering a PAT growth of 117.3/9.3% YoY/QoQ. Large MTM loss of Rs 3.5bn on the firm’s treasury, however resulted in a consolidated (ex. MOHL) net loss of Rs 2.7bn.
We reduce our estimates but retain BUY with a 5.2% lower TP of Rs 633, as core (broking and AMC) profit growth outlook weakens for FY21E.
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