Motilal Oswal Financial Services (MOFS) shares have once again attracted the attention of brokerage firms. The company's results for the first quarter of fiscal year 2025-26 have exceeded expectations. Based on this, brokerage house MK Global has maintained its 'BUY' rating on the stock and increased the target price from ₹850 to ₹1050.
Estimated Further Upside of 18 Percent
On Monday, July 28, the stock was trading around ₹895. From the current level, the share is expected to rise by about 18 percent. According to MK Global, considering the company's current position and future strategy, the stock may show further gains.
Broking Income Balanced the Decrease in Distribution Income
Due to seasonal effects in the Wealth Management segment, there was a decline in distribution income, but the strength in broking income largely balanced this effect. Overall, the company's total revenue saw a decrease of about 5 percent during the quarter, but due to segmental strength, this decline was not very significant.
What the Brokerage Said About the Company's First Quarter
According to MK Global's report, Motilal Oswal's performance in the April to June quarter was once again b. The company's operating profit increased by 21 percent year-on-year to ₹522 crore. This increase was due to the strength received from the Capital Market segment.
In addition, the company benefited from treasury gains, due to which the reported net profit (including OCI) was ₹1430 crore. This figure was much higher than market expectations, which led the brokerage to further strengthen its outlook on the stock.
Tremendous Net Profit in the Capital Markets Segment
Due to deal activity and better strategy in the Capital Markets segment, the company recorded a net profit of ₹94 crore. This segment is continuously strengthening for the company, and its impact is clearly visible on the overall financial performance.
Strength Seen in AUM, but Pressure Due to Increased Costs
MK Global says that better growth has been seen in the Asset Management and Private Wealth segments. The AUM (Assets Under Management) of both segments has increased continuously. However, due to the increase in costs, there has been some pressure on the net profit (PAT).
Housing Finance Business Performance Remained Weak
While other segments performed better, the performance of the housing finance business was slightly weak. It recorded a decline in net interest margin (NIM), which affected profits. However, the performance of the company's other units largely overshadowed this weakness.
Brokerage Changed Estimates for FY26-28
After the b results of the first quarter, MK Global has increased the company's net profit estimates for fiscal years 2026 to 2028 by 4 to 5 percent. While reiterating the 'BUY' rating, the target price for June 2026 has been fixed at ₹1050. Earlier, this target was kept at ₹850.
Share Jumped up to 50 Percent in the Last One Year
Motilal Oswal Financial Services stock has risen more than 50 percent in the past one year. At the same time, it has given returns of 330 percent in two years, 360 percent in three years, and 415 percent in five years. This reflects its b long-term performance.
Share's High-Low and Current Level on BSE
The 52-week high for MOFS on BSE is ₹1063.40 and the low is ₹488. Currently, the share is trading around ₹895. Its market capitalization is more than ₹53,656 crore, which makes it one of the big companies in this segment.
Company's Track Record and Outlook is Strong
The brokerage report states that despite volatile market conditions, the company has consistently performed bly. This is due to a better business model, b client base, technical upgradation, and b hold segment-wise. The company's influence is continuously increasing in the areas of broking, wealth, and asset management.
Brokerage's Strong Confidence
Brokerage houses like MK Global say that the company can continue to perform better in the coming times as well, due to which investors' eyes are on this stock. Now that the target price has been increased by 24 percent, the discussion of this share in the market has become even more intense.
