Motilal Oswal Financial Services gains 3% after Emkay sees 26% upside

In its research note, the brokerage said that MOFSL's strength lies in its solid economic moats, especially in capital markets (broking and investment banking) and asset and wealth management sectors. These areas have proven resilient even during crises.

Additionally, MOFSL's asset and wealth management businesses leverage its expertise in equity, which has reached critical mass and is expected to drive superior profitability growth, with an estimated operating profit after tax compound annual growth rate (CAGR) of 25% from fiscal year 2023 to 2026.

MOFSL's net worth of approximately ₹83 billion is primarily invested in equity and mutual fund treasury assets, providing an additional safety margin to the valuation of its core operating businesses. This suggests that even if the core businesses face challenges, the substantial assets held by MOFSL could cushion any potential losses, the brokerage observed.

Shares of Motilal Oswal Financial Services Ltd were trading 2.14% higher at ₹1,614.15 apiece on the BSE at 10:20 am.