Motilal Oswal Financial Services Ltd - Grab the opportunity

  Table of contents Business analysis Financial analysis Technical analysis Business analysis They are in following business: Retail...

 

Table of contents

1. Business analysis
2. Financial analysis
3. Technical analysis

Business analysis

They are in following business:

1. Retail and Institutional Broking,
2. Private Wealth Management,
3. Investment Banking,
4. Private Equity,
5.  Asset Management and Home Finance.

Financial analysis

By seeing the profit loss statement from 2010 to 2021, stocks have grown 5 times by its revenue. Even the operating margin percentage improved significantly and current operating margin percentage is 56%.

If we see the profit loss statement, the  trend of operating profit and net profit increase significantly and it is almost 6 times.

If we see the balance sheet (please find below image), the trend of cash reserve and cash equivalent are sufficient it means that they have the capacity to expand in furure because of sufficient cash in hand.

Despite all the above positive outlook, the particularly stock is traded at low PE (7.10), it means that  particular stock is still reasonable to buy. If we compare peer comparison ROCE (return on capital employed) is high (22.14)

 Technical analysis

200 days simple moving average is almost at current price. If we see immediate previous high it is at INR 738 and before that just before pandemic, price of stock is at INR 906.

It is all-time high is INR 1568 on January 2018. Since so many months stocks is in cumulative stage. The most important reason is volume can be seen in chart pattern that means someone has start to buy in large volume.

200 days simple moving average chart

Volume chart

Reference:

1. Scrrenerview.com
2. Tradimgview.com
3. Moneycontrol.com 

                          

        Disclaimer: I am not SEBI approved Analyst or advisor. Investor/Traders must do his/her own Study and analysis before investing

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