Motilal Oswal Stock in Spotlight as Citigroup Acquires Shares Worth ₹14 Cr – What It Means for Investors
Motilal Oswal Stock : In a bold move that has caught the market’s attention, Citigroup Global Markets Mauritius Pvt. Ltd. recently acquired 2.03 lakh shares of Motilal Oswal Financial Services Ltd. in a significant block deal valued at approximately ₹13.81 crore. This strategic investment has sparked renewed interest in the midcap stock, which has already delivered stellar returns of over 460% in the past five years.
📈 Stock Movement After the Deal
Following the announcement, the stock witnessed a brief rally. On Tuesday, shares of Motilal Oswal Financial Services surged to an intra-day high of ₹744, up 1.07% from its previous close of ₹736.10. However, the momentum faded slightly with the stock closing at ₹734.65. Despite the minor dip, the deal has stirred optimism among retail and institutional investors alike.
The block deal was executed on May 12, 2025, with Morgan Stanley Asia Singapore Pte. offloading 2,03,343 shares at an average price of ₹679.50 per share, indicating growing institutional interest in the company.
🏢 What Makes Motilal Oswal Financial Services a Strong Contender?
Founded in 1987, Motilal Oswal Financial Services Ltd. is one of India’s leading financial services firms offering a broad range of services including broking, asset management, wealth management, private equity, and housing finance. The company has been consistently expanding its footprint and financial strength over the years.
📊 Key Business Metrics (As of April 24, 2025):
- Assets Under Advice (AUA): ₹5.5 lakh crore (Up 33% YoY)
- Net Operating Revenue: ₹5,161 crore (Up 31% YoY)
- Operating Profit After Tax (PAT): ₹2,016 crore (Up 31% YoY)
- Treasury Investments: ₹7,730 crore (Up 26%)
- Net Worth: ₹11,079 crore (Up 27%)
- Lending Book: ₹12,114 crore (Up 7% YoY)
- Return on Equity (ROE): 25%
- Active NSE Clients: Over 1 million (Up 15%)
- Total Client Base: Over 12.8 million (Up 83%)
These numbers point to a solid and growing financial base, which likely attracted Citigroup’s interest in the stock.
💰 Financial Snapshot
Despite strong operational performance, the latest quarterly results presented a mixed bag for investors. The company posted a consolidated revenue of ₹1,190 crore for Q4 FY25, down 44.76% from ₹2,154 crore in Q4 FY24. This slump led to a net loss of ₹63 crore, compared to a net profit of ₹725 crore a year earlier.
However, the overall yearly performance remained positive:
- FY25 Revenue: ₹8,339 crore (Up 17.93% YoY)
- FY25 Net Profit: ₹2,508 crore (Up 2.45% YoY)
The minor dip in Q4 does not overshadow the consistent long-term growth trajectory, making it a stock worth watching.
📋 Financial Ratios and Market Data
| Metric | Value |
|---|---|
| Market Cap | ₹43,406 Cr |
| Current Price | ₹725 |
| 52-Week High / Low | ₹1,064 / ₹475 |
| Stock P/E | 17.4 |
| Book Value | ₹185 |
| Dividend Yield | 0.69% |
| Return on Capital Employed (ROCE) | 18.7% |
| Return on Equity (ROE) | 25.2% |
| Face Value | ₹1.00 |
🧾 Shareholding Pattern (As of March 2025)
- Promoters: 68.45%
- FIIs: 6.01%
- DIIs: 5.71%
- Retail & Others: 19.83%
The high promoter holding reflects strong confidence in the business, while growing FII interest points to the company’s potential for global investors.
🔍 Why This Matters
Citigroup’s investment is a strong endorsement of Motilal Oswal’s fundamentals, signaling that the stock could see institutional tailwinds in the near term. With robust financial metrics, rising client base, and consistent earnings growth, the company appears to be well-positioned to benefit from the rising demand in India’s financial services space.
❓ Frequently Asked Questions (FAQs)
Q1: Why did Motilal Oswal’s stock rise recently?
A1: The stock jumped after Citigroup Global Markets Mauritius acquired over 2 lakh shares worth ₹13.81 crore, signaling institutional confidence in the company.
Q2: Who sold the shares in the Citigroup deal?
A2: Morgan Stanley Asia Singapore Pte. was the seller in the block deal.
Q3: How has the company performed financially in FY25?
A3: Despite a weak Q4, Motilal Oswal reported FY25 revenue growth of 17.93% and a modest 2.45% rise in net profit.
Q4: What makes Motilal Oswal an attractive investment?
A4: Strong ROE of 25.2%, rising client base, consistent growth in AUA, and steady increase in revenue and net worth make it a compelling midcap bet.
Q5: What is the current stock valuation?
A5: The stock is trading at ₹725 with a P/E of 17.4, indicating moderate valuation compared to its growth potential.
📝 Final Thoughts
Motilal Oswal Financial Services continues to command investor interest with its diversified offerings, strong financials, and growing market share. With backing from global giants like Citigroup, the stock could be on the radar of savvy investors looking for midcap winners in the financial services sector.
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