High ROE multibagger stock and FIIs & DIIs increase stake: This stockbroking company’s board announces a 3:1 bonus share!

The stock gave multibagger returns of 160 per cent in just 6 months and a whopping 300 per cent in 1 year.

Today, shares of Motilal Oswal Financial Services Ltd gained 1.46 per cent to an intraday high of Rs 2,638 per share from its previous closing of Rs 2,600. The stock’s 52-week high is Rs 2,677 and its 52-week low is Rs 583. The shares of the company saw a spurt in volume by more than 1.41 times on BSE>

The Board of Directors of the company announced bonus shares in the ratio of 3:1 i.e. 3 equity shares of the face value of Rs 1 each for every 1 existing equity share of the face value of Rs 1 each held by the shareholders of the company as on record date which will be announced in due course of business.

The company has a market cap of over Rs 37,000 crore and has delivered good profit growth of 52.7 per cent CAGR over the last 5 years. According to its Quarterly Results, the net sales increased by 108 per cent to Rs 2,141.3 crore and net profit increased by 334 per cent to Rs 724.6 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 62 per cent to Rs 7,067.8 crore and net profit increased by 162 per cent to Rs 2,445.6 crore in FY24 compared to FY23.  

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Motilal Oswal Financial Services Ltd (MOFSL), founded in 1987, is a large financial services company with a presence in over 550 Indian cities and towns. They offer a variety of financial products and services through a network of business partners, with over 16 million customers. MOFSL operates in three main areas: capital markets (providing broking, institutional equities, and investment banking services), asset and wealth management (including mutual funds, private equity, real estate, and wealth management), and housing finance. Notably, they are among the top 3 stock brokers in India based on gross brokerage.

As of March 2024, FIIs increased their stake to 6.73 per cent and DIIs increased their stake to 6.94 per cent compared to 6.47 per cent and 6.28 per cent respectively in March 2023. The shares of the company have returns on equity (ROE) of 33 per cent. The stock gave multibagger returns of 160 per cent in just 6 months and a whopping 300 per cent in 1 year. Investors should keep an eye on this Mid-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.