Buy Motilal Oswal Financial; target of Rs 633: HDFC Securities
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.
May 15, 2020 / 11:25 AM IST
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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