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Motilal Oswal
I n - l i n e q u a r t e r , s t i l l d u l l …
Motilal Oswal (MOSL) reported average daily turnover (ADT) of | 2600
crore for Q1FY12, down from | 3100 crore in both Q1FY11 (YoY) and
Q4FY11 (QoQ). The topline was reported down 26% YoY and 11% QoQ
to | 112 crore, exactly as per our estimate. EBIDTA margins of 31% were
ahead of our expectations due to a reduction in headcount from 1,540 in
Q4FY11 to 1,350 in Q1FY12. PAT of | 21 crore was also precisely in line
with our expectations. We expect market share of 2.1% and PAT of |124
crore in FY13E for MOSL.
ƒ Broking revenues dip, yields bounce back
MOSL’s overall market share dropped to 1.8%, down 20 bps QoQ
and 110 bps YoY. The management has claimed that market share
in the cash segment remains constant under such trying
circumstances. This is reflected by the improvement in blended
yields sequentially from 4.6 bps to 5.1 bps in Q1FY12. In absolute
terms, broking revenues were | 77 crore, down 12% QoQ and 31%
YoY. We expect such pressure on broking revenues to continue for
a few more quarters and see consolidation phase for the industry.
ƒ Other sources also in sync with our estimate
The investment banking and asset management stream also
remained quite dull during the quarter on expected lines. IB fees
were down 59% QoQ to | 2 crore. Fund based income of | 21 crore
was up 19% QoQ. We do no see any runaway growth from these
lines of businesses in the coming period. We, therefore, expect mild
moderation in total revenues till FY13E to | 556 crore.
V a l u a t i o n
After a few quarters of pain, MOSL reported a noticeable improvement in
blended yields (@5.1 bps), which is seen as a welcome surprise. We do
not see any immediate change in overall market volumes dynamics but
do not expect the share of the cash segment to fall much further. We,
therefore, see a sluggish topline performance but recent employee and
outlets (down by 37 QoQ) rationalisation by the company would enable
them to control cost. We, therefore, maintain our target price of | 110 and
recommend a HOLD rating on the stock at current levels.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Motilal Oswal
I n - l i n e q u a r t e r , s t i l l d u l l …
Motilal Oswal (MOSL) reported average daily turnover (ADT) of | 2600
crore for Q1FY12, down from | 3100 crore in both Q1FY11 (YoY) and
Q4FY11 (QoQ). The topline was reported down 26% YoY and 11% QoQ
to | 112 crore, exactly as per our estimate. EBIDTA margins of 31% were
ahead of our expectations due to a reduction in headcount from 1,540 in
Q4FY11 to 1,350 in Q1FY12. PAT of | 21 crore was also precisely in line
with our expectations. We expect market share of 2.1% and PAT of |124
crore in FY13E for MOSL.
ƒ Broking revenues dip, yields bounce back
MOSL’s overall market share dropped to 1.8%, down 20 bps QoQ
and 110 bps YoY. The management has claimed that market share
in the cash segment remains constant under such trying
circumstances. This is reflected by the improvement in blended
yields sequentially from 4.6 bps to 5.1 bps in Q1FY12. In absolute
terms, broking revenues were | 77 crore, down 12% QoQ and 31%
YoY. We expect such pressure on broking revenues to continue for
a few more quarters and see consolidation phase for the industry.
ƒ Other sources also in sync with our estimate
The investment banking and asset management stream also
remained quite dull during the quarter on expected lines. IB fees
were down 59% QoQ to | 2 crore. Fund based income of | 21 crore
was up 19% QoQ. We do no see any runaway growth from these
lines of businesses in the coming period. We, therefore, expect mild
moderation in total revenues till FY13E to | 556 crore.
V a l u a t i o n
After a few quarters of pain, MOSL reported a noticeable improvement in
blended yields (@5.1 bps), which is seen as a welcome surprise. We do
not see any immediate change in overall market volumes dynamics but
do not expect the share of the cash segment to fall much further. We,
therefore, see a sluggish topline performance but recent employee and
outlets (down by 37 QoQ) rationalisation by the company would enable
them to control cost. We, therefore, maintain our target price of | 110 and
recommend a HOLD rating on the stock at current levels.
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