15 Days Price Change
Market Cap ₹ 9041Cr.
Current Price ₹ 15
Lot Size 1000
52W High ₹ 16
EPS 0.16
P/B 9
Face Value 1
Debt to Equity 1.85
Stock P/E 95.3
Book Value ₹ 1.7
Company
52W Low ₹ 10.5
Demat Account Both
ISIN INE658R01011
Valuation
No. of Shares 602.71Cr.
Company Overview:
Motilal Oswal Home Finance Limited (MOHFL) is registered with National Housing Bank (NHB) and is amongst the leading new age Housing FinanceCompanies in India having its presence across 11 states in Western, North-Central and Southern India. MOHFL is a subsidiary of Motilal Oswal Financial Services Limited (MOFSL). MOFSL is a well-diversified, financial services company focused on wealth creation for all its customers, such as institutional, corporate, HNI and retail. MOHFL is registered with National Housing Bank (NHB) under section 29A of the National Housing Bank Act, 1987. The company is a professionally managed housing finance company with unique combination of financially sound and technically experienced parentage having built public trust of over 4 decades in the domain of financial services. The group is known for their professional ethics, robust knowledge and strong execution capabilities.
Motilal Oswal Housing Finance Ltd. cater to pure-retail affordable housing space through Motilal Oswal Home Finance (previously known as Aspire Home Finance Corporation). They concentrated their efforts in re-building home finance business in terms of processes, system, manpower and structure to strengthen their business. In FY2021, MOHFL on-boarded Mr. Arvind Hali as MD and CEO. Mr. Hali has more than 20 years of experience and was previously associated with Art Housing Finance, Intec Capital, AU Financiers, Dhanalaxmi Bank, SCB etc.
Due to Covid-19 induced lockdown, disbursements remained muted in the first few months of FY2021. However, they have gradually picked up and disbursements for the full year stood at R 273 crores, up 42% YoY. The loan book stood at R 3,512 crores across 47,665 families as of Mar 2021. They have witnessed sharp traction in collection efficiency in the month of March which has reached to pre-Covid level at 97%. Our average ticket-size at sourcing stood at R 8.6 lakhs in FY2021. They have put in place a vertical organization structure comprising sales, credit, collection and technical team. The implementation of cluster level credit layer along with 4 layer credit approval system based on loan ticket sizes and differentiated pricing methodology for loans based on risk type should likely result in improve underwriting, going forward. In FY2021, They have received sanctions from NHB for the first time. Apart from that, they also did securitization transaction under PTC route in the last quarter, thus diversifying their borrowing. MOHFL witnessed 95 bps reduction in cost of fund on YoY basis in FY2021 to 9.25%. Cost of funds for the month of March 2021 stood at 8.7%. MOHFL net gearing declined to 2.8x as of Mar 2021. They have limited borrowing repayments for next 1 year, strong undrawn borrowing lines and ALM places us in strong liquidity position.
Mission & Vision:
The company works on the business philosophy of financial inclusion of Lower Income Group Indian families by providing them an access to long term housing finance.
Several services that are offered by MOHFL:
Home Purchase Loan:
Motilal Oswal Home Loans helps to acquire a ready /under construction residential property / construction of a residential property on own land. MOHFL also provides loans to refinance home loan availed by the customer from other Banks / HFCs.
Construction Loan:
Home Construction Loan gives tailored and flexible finance to put building blocks for construction of home. The loan is disbursed as per the stage of construction, giving you the flexibility to contribute your share too in parts. MOHFL Home Construction Loan is extended to construct residential premises either from a contractor or contractual builder on a freehold owned plot of non-agricultural land as per plan approved by the local authority.
Home Improvement Loan:
It offers loans for renovation of an existing space for a more comfortable environment and a better quality of living. This loan facilitates internal and external repairs and other structural improvements in existing home. Towards this end, the MOHF Home Improvement Loans would typically cover the following improvements: Tiling, Flooring, Roofing, Painting, Electrical work, Plumbing work, Furniture work, Waterproofing, and Grill work for windows.
Home Extension Loan:
MOHFL provide loans to construct additional room/s or floor within the permissible building plan.
Loan Against Property:
MOHFL Loan Against Property product, provides the opportunity to leverage assets for fulfilling financial needs.
Competitive Strength:
MOHFL have invested significantly in technology to reduce operational costs and turnaround-times. In FY2021, we launched Digital MO Partner app. They have developed in-house “Loan Origination System” (LOS) and “Loan Management System” (LMS). These newly developed systems provides lot of ease of access, operational convenient, efficiency enhancement and fast tracking of processes. The mobile apps for sales and credit teams coupled with newly framed processes are expected to deliver much better outcomes in future.
Motilal Oswal’ is a well-established brand among retail and institutional investors in India. MOFSL believes that its brand is associated with high quality research and advice as well as corporate values like integrity and excellence in execution. The company has been able to leverage its brand awareness to grow its businesses, build relationships and attract and retain talented individuals.
The promoters, Mr Motilal Oswal and Mr Raamdeo Agrawal are qualified chartered accountants with over three decades of experience each in the financial services industry. The top management team comprises qualified and experienced professionals, with a successful track record. The company believes that its management’s entrepreneurial spirit, strong technical expertise, leadership skills, insight into the market and customer needs provide it with a competitive strength, which will help to implement its business strategies.
The broad range of offerings under Broking and Distribution, Institutional Equities, Asset Management, Wealth Management, Investment Banking, Private Equity and Housing Finance business, helps to foresee client requirements and provide full-fledged services under single platform. The production and distribution of all financial products and services helps the company’s advisors and clients to attain client’s financial objectives with best in class services.
Risk exposure is monitored and controlled through a variety of separate but complementary financial, credit, operational, compliance and legal reporting systems. Risk management department analyses this data in conjunction with the company’s risk management policies and takes appropriate action where necessary to minimize risk.
Key Strength of MOHFL:
Motilal Oswal’s operating margins continue to remain stable despite the fluctuations in market volumes and revenues. This is a result of creating a robust business model that can withstand the cyclical fluctuations in business volumes and simultaneously capture the opportunities provided by the structural growth of India. During the year, CRISIL Limited reaffirmed the Credit Rating of “CRISIL A1+” to the Commercial Paper Programme of Rs. 1500 crores (enhanced from Rs. 1300 crores) of the Company. CRISIL Limited reaffirmed the Credit Rating of “CRISIL A1+” to the Commercial Paper Programme of Rs. 2500 crores and “CRISIL A1+” to the Commercial Paper Programme of Rs. 800 crores (enhanced from Rs. 500 crores) of Motilal Oswal Finvest Limited, a subsidiary of the Company. CRISIL has also reaffirmed its ‘‘CRISIL AA-/CRISIL PP-MLD AA-r/Stable/CRISIL A1+’’ rating on the debt instruments and bank loan facilities of Motilal Oswal Home Finance Limited. ICRA Limited assigned the credit rating of “[ICRA] AA (Stable)” to the NCD programme of Rs. 100 crores and reaffirmed the credit rating of “[ICRA] AA(Stable)” to the NCD Programme of Rs. 200 crores of the company. ICRA has reaffirmed its ‘[ICRA]A+ (Stable)/ PP-MLD ICRA A+/Stable/ICRA A1+’ rating on the debt instruments and withdrawn rating for bank loan facilities of Motilal Oswal Home Finance Limited. India Ratings and Research reaffirmed rating of “IND A1+” to Commercial Paper Programme of Rs. 1500 crores of Motilal Oswal Financial Services Limited. India rating also reaffirmed rating of “IND A1+” to Commercial Paper Programme of Rs. 3000 crores and assigned a new rating of “IND A1+” to Commercial Paper Programme of Rs. 300 crores of Motilal Oswal Finvest Limited. During the year, India Ratings has assigned a short-Term issuer rating of ‘IND A1+’ to Motilal Oswal Home Finance Limited. The ratings indicate a strong degree of safety regarding timely servicing of financial obligations.
Promoters and ShareHolding Pattern:
Peer Comparison:
Financials:
Source: Company Filing Form AOC-4
Source: Company Filing Form AOC-4
Source: Company Filing Form AOC-4
Valuations:
The ROE during the year FY2021 stood at 38% vs 6.6% in FY2020. ROE was lower in FY2020 primarily on account of MTM based loss. EBITDA and Net profit margins stood at 57% and 34% respectively in FY2021. Debt to Equity ratio stood at 1.3x. As of Mar 2021, Motilal Oswal’s total quoted equity investments stood at Rs.2,180 crores. Total investments including alternate investments stood at Rs. 3,096 crores as of Mar 2021. Motilal Oswal witnessed highest ever gain on fund based investments in a year in FY2021 at R 779 crores.
News:
Yes trading in unlisted shares is undoubtedly legal in India. The trading takes place in the over-the-counter market through various platforms like Sharescart.com.
No, SEBI does not regulate the unlisted share market but certain rules and regulations of SEBI are applicable in the unlisted market space as well, such as, the DP charges for each transaction, stamp duty, lock-in period and more.
You will get the best price for Motilal Oswal Home Finance Limited and a hassle-free buying experience only on Sharescart.com platform.
Motilal Oswal Home Finance Limited's unlisted shares can be easily purchased at Sharescart.com by following a few easy steps. Given below are the steps involved in the buying of these shares:
Step 1 - Confirmation on the number of shares you want to purchase of Motilal Oswal Home Finance Limited at a trading price.
Step 2 - Submission of the necessary document like your Client Master Report. Certain additional documents will also be asked for by our representative if required such as a cancelled cheque and your PAN Card if you are paying from a secondary bank account which is not mentioned in your CMR.
Step 3 - The Sharescart.com representative will share the account details so that you can transfer the trade amount into the account.
Step 4 - The shares of Motilal Oswal Home Finance Limited will reflect in your Demat account within 24 hours as soon as the payment is received and depending on the holidays. Our details would be available to you before the transfer.
Motilal Oswal Home Finance Limited's unlisted shares can be easily sold at Sharescart.com by following a few easy steps. Given below are the steps involved in the of selling of these shares:
Step 1- Confirmation on the number of shares you want to sell of Motilal Oswal Home Finance Limited and at what price you want to sell.
Step 2- At Sharescart, we will find a suitable buyer for you according to your requirements and if you accept the trade we will move on to the transfer and the payment aspect of the trade.
Step 3- The Sharescart representative will provide you with the Demat account details to transfer your Motilal Oswal Home Finance Limited shares. They will also notify you about the additional details required from your end before the transfer of shares such as client master copy, delivery instruction slip, and more.
Step 4- Once the transfer is complete, the payment would be credited to your bank account within 24 hours, depending on the holidays.
Over the years the minimum ticket size for investment has dropped as more and more people have started investing in the Unlisted market. Currently, the minimum ticket size for Motilal Oswal Home Finance Limited is between 30K to 50K.
Brokers or dealers provide you with a trading facility means you can buy and sell shares with your broker but when you buy shares the Depository holds your shares. There are mainly two depositories NSDL and CDSL.
If you want to check your shares in NSDL and CDSL you need to download the application (NSDL Speede App or CDSL myeasi).
The taxation on the Motilal Oswal Home Finance Limited shares may vary depending on 2 Factors:
Short-term capital
Unlisted shares - In unlisted shares, the taxation of short-term capital gain i.e. less than 24 months is taxable according to the investor's income tax slab.
Listed Shares - In listed shares, the taxation for short-term capital gains i.e. less than 12 months is at 15%
Long-term capital
Unlisted shares - The taxation for long-term capital gain i.e. more than 24 months is taxable at 20% with indexation benefits.
Listed Shares - The taxation for long-term capital gains i.e. more than 12 months is at 10% after an exemption of 1 lakh. There are no indexation benefits in listed shares.
According to the current rule issued by SEBI last year in August 2021, the lock-in period is brought down from 1 year to 6 months. This was done to entice more investors to invest their money in pre-IPO companies and startups. The lock-in period of Motilal Oswal Home Finance Limited varies depending on which type of investor you are:
You can check daily share prices of companies on our website or register with us using your phone number where you will get daily whatsapp updates on company news and other essential informations.
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