India Ratings assigns Motilal Oswal Financial Services' NCDs 'IND AA'/Stable, affirms CP at 'IND A1+'

India Ratings Limited ("Ind-Ra") has assigned AA ratings with stable outlook on long term debt instruments of Motilal Oswal Financial Services Limited ('The Company'), Motilal Oswal Home Finance Limited (MOHFL) and Motilal Oswal Finvest Limited (MOFL).

The key rationale to ratings include the group's established franchisee in capital market business which has time tested multiple market cycles. Moreover, its expertise in research and advisory offerings to broking clients has led to client stickiness across market cycles. The group has demonstrated high profitability and operating leverage benefit would play out in its capital market businesses.

The rationale also includes diversification of income at group level to linear revenue stream, as 60% of revenues are contributed by linear businesses such as Asset & Wealth Management and Housing finance. The rating also takes into consideration MOHFL's approach of geographical diversification, strengthening of the underwriting process and better asset quality, strengthening team and improvement in disbursements, stronger systems / processes and risk management capabilities , reduction in cost of funds and improvement in overall profitability.

The rating also takes into consideration the group's healthy capitalisation and adequate liquidity on the balance sheet aided by fund based investments.

Shares of Motilal Oswal Financial Services Limited was last trading in BSE at Rs. 873.35 as compared to the previous close of Rs. 871.40. The total number of shares traded during the day was 12832 in over 863 trades.

The stock hit an intraday high of Rs. 888.00 and intraday low of 868.05. The net turnover during the day was Rs. 11227215.00.

Source : Equity Bulls

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MotilalOswalFinancialServices INE338I01027 MOTILALOFS Finance NBFCs MOSL RatingUpdate