Motilal Oswal Financial Services Ltd.
ISIN: INE338I01027 • Market Cap: ₹56,498 Cr
The 5-Pillar Quality Audit for Motilal Oswal Financial Services Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (40.9%), Return on Capital Employed (18.3%), and equity compounding (14.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 1.67 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (12.3%) and 3Y PAT CAGR (-6.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 28.53 vs PEG of 1.19 and Dividend Yield of 0.6%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 67.2%, backed by 13.6% institutional ownership.
Key Fundamental Strengths
Consistent Market Standing (Large Cap)
Established player in the Financial Services sector with an overall fundamental quality score of 62/100.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 1.67)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Sectoral & Macro Headwinds (Financial Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Financial Services space.
Quantitative Strategy Eligibility
Checking MOTILALOFS against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 62/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Financial Services Sector Peer Comparison
Compare MOTILALOFS directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Motilal Oswal Financial Services Ltd. (MOTILALOFS)Current | 62/100 | ₹56,498 Cr | 28.53 | 18.3% | 1.67 | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: Motilal Oswal Financial Services Ltd.
Q:What is the 5-Pillar Fundamental Score for Motilal Oswal Financial Services Ltd. (MOTILALOFS)?
Motilal Oswal Financial Services Ltd. has a RupeeTools Fundamental Score of 62/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (81/100), Financial Health (47/100), Growth (42/100), Valuation (72/100), and Ownership Quality (72/100).
Q:Is MOTILALOFS fundamentally strong for long-term investment?
MOTILALOFS currently holds a moderate quality rating of 62/100. While it operates in the Financial Services sector, investors should monitor its debt health before initiating long-term positions.
Q:Does MOTILALOFS pass the Coffee Can Investing filter?
Yes! MOTILALOFS satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does MOTILALOFS compare against other Financial Services peers?
Within India's Financial Services sector, MOTILALOFS trades at a P/E of 28.53 and generates an ROCE of 18.3%. Compare its 5-Pillar score of 62/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.