Motilal Oswal vs Angel One – The Indian stock market has witnessed a surge in investor participation, boosting the prospects of brokerage firms. Two key players in this sector are Motilal Oswal Financial Services and Angel One Limited. Both companies have established strong market positions, but which one is the better investment? Let’s dive deep into a comparative analysis, covering financial performance, valuation, and growth potential.
Motilal Oswal vs Angel One
Company Overview
Motilal Oswal Financial Services
Founded in 1987, Motilal Oswal is a full-service brokerage firm offering equity trading, wealth management, investment banking, and financial research. With a strong research-driven approach, the company has built a reputation for delivering quality investment advice and portfolio management services.
Angel One Limited
Angel One, formerly known as Angel Broking, is a fintech-driven brokerage firm established in 1996. With a focus on digital stock trading and a robust technology-driven platform, it has gained immense popularity among retail investors due to its competitive brokerage rates and seamless user experience.
Financial Performance Comparison
To determine the better investment option, let’s compare key financial metrics of Motilal Oswal vs Angel One:
| Financial Metric | Motilal Oswal | Angel One |
|---|---|---|
| Market Capitalization | ₹ 36,285 Cr. | ₹ 18,940 Cr. |
| Current Price | ₹ 605 | ₹ 2,098 |
| 52-Week High / Low | ₹ 1,064 / 326 | ₹ 3,503 / 1,944 |
| Stock P/E Ratio | 11.0 | 14.2 |
| Book Value | ₹ 185 | ₹ 585 |
| Dividend Yield | 0.83% | 1.65% |
| ROCE (Return on Capital Employed) | 20.7% | 38.7% |
| ROE (Return on Equity) | 32.6% | 43.3% |
| Debt-to-Equity Ratio | 1.41 | 0.59 |
| Promoter Holding | 68.7% | 35.6% |
| Price to Book Value | 3.28 | 3.59 |
| Intrinsic Value | ₹ 772 | ₹ 4,722 |
| Graham Number | ₹ 478 | ₹ 1,410 |
| RSI (Relative Strength Index) | 41.8 | 39.9 |
| EPS (Earnings Per Share) | ₹ 55.0 | ₹ 151 |
| 200-Day Moving Average | ₹ 714 | ₹ 2,579 |
| Free Cash Flow (3Yrs) | ₹ -2,751 Cr. | ₹ 655 Cr. |
| Free Cash Flow (5Yrs) | ₹ -2,068 Cr. | ₹ 73.1 Cr. |
| Debt | ₹ 15,580 Cr. | ₹ 3,135 Cr. |
| Return on Assets | 8.94% | 10.9% |
Key Takeaways
1. Profitability & Growth Potential
Angel One outshines Motilal Oswal in terms of ROE (43.3%) and ROCE (38.7%), indicating superior profitability and efficient capital utilization. Additionally, Angel One’s EPS (₹ 151) is significantly higher than Motilal Oswal’s (₹ 55.0), reflecting stronger earnings per share.
2. Valuation & Investment Opportunity
- Stock P/E Ratio: Motilal Oswal (11.0) is trading at a lower valuation compared to Angel One (14.2), making it a relatively cheaper stock.
- Intrinsic Value vs Current Price: Angel One’s intrinsic value (₹ 4,722) is significantly higher than its current price (₹ 2,098), indicating an undervaluation. In contrast, Motilal Oswal’s intrinsic value (₹ 772) is closer to its current price (₹ 605), suggesting limited upside potential.
3. Financial Stability & Debt Levels
Angel One maintains a healthier debt-to-equity ratio (0.59) compared to Motilal Oswal (1.41). Lower debt means lower financial risk, which makes Angel One a safer investment during uncertain market conditions.
4. Promoter Confidence & Market Sentiment
- Motilal Oswal has a higher promoter holding (68.7%) compared to Angel One (35.6%), indicating strong promoter confidence.
- Both stocks have RSI values below 50, suggesting they are not overbought and could be attractive for investors looking for entry opportunities.
Which Stock Should You Invest In?
- For aggressive growth and strong returns: Angel One is the better choice due to its higher profitability, lower debt, and significant upside potential based on intrinsic value.
- For stability and a well-established legacy brand: Motilal Oswal is a solid option with strong promoter backing and relatively lower valuation.
Both stocks cater to different investment styles, and the choice ultimately depends on your risk appetite and long-term financial goals.
Final Verdict: Motilal Oswal vs Angel One – Which One Wins?
While both companies have a strong presence in the brokerage industry, Angel One appears to have a competitive edge due to its fintech-driven model, better financial health, and superior profitability metrics. However, Motilal Oswal remains a reliable option for conservative investors seeking stability.
Recommended Strategy:
- Short-term traders & aggressive investors – Consider Angel One.
- Long-term investors preferring stability – Look into Motilal Oswal.
For more market insights, follow our news.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like MoneyControl, ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.