Motilal Oswal shares: 3 reasons why UBS sees strong upside on MOFSL
UBS said MOFSL's historical multiples are of less relevance due to the evolving business model and increasing share of fee-based income.
- Jun 12, 2026,
- Updated Jun 12, 2026 1:48 PM IST
UBS in its initiation note on Motilal Oswal Financial Services Ltd (MOFSL) gave three reasons why the stock is a 'Buy'. The foreign brokerage sees MOFSL as structural beneficiary of financialisation-led asset under management (AUM) expansion. UBS sees operating leverage driving non-linear earnings growth for MOFSL. In addition, a product mix shift towards AMC and private wealth businesses underpins potential re-rating, UBS said sending MOFSL shares 5 per cent higher in Friday's trade. Overall, UBS said, potential recurring revenues, improving mix and higher capital efficiency supports a structural upgrade in business quality towards premium asset management and wealth multiples.
Following the report, the MOFSL stock climbed 5.94 per cent to hit a high of Rs 880.90 on BSE, still offering 25 per cent upside, as per the UBS target price of Rs 1,100. "MOFSL looks well-positioned to capitalise on India’s structural financialisation, with exposure to high-growth AUM pools from wealth and asset management. We believe industry tailwinds remain robust and forecast mutual funds' AUM to grow at an 18 per cent CAGR by FY30E, with a 20 per cent-plus CAGR (FY30E) for HNI wealth and alternatives. The firm is transitioning to an AUM-led, annuity-driven model, where growth is linked to client assets rather than transaction volumes," UBS siad.
For FY26-29E, the foreign brokerage is expecting MOFSL AUM to expand at a 21 epr cent CAGR, driving a 19 per cent revenue CAGR. It said the market might be underappreciating MOFSL’s shift to higher quality, recurring wealth and distribution earnings, reducing broking cyclicality and driving a 22 per cent earnings CAGR over FY26-29E.
"Based on our PEG ratio analysis, we think the stock offers attractive risk-reward, trading at 15x one-year forward PE, slightly above its three-year average. We initiate coverage at Buy," it said.
UBS said MOFSL's historical multiples are of less relevance due to the evolving business model and increasing share of fee-based income.
"Our valuation is anchored to higher multiples for asset-light businesses (AMC ~28 times, private wealth 25 times and wealth 18 times) and a relatively lower multiple for capital markets (14 times) on FY28E earnings," UBS said.
UBS in its initiation note on Motilal Oswal Financial Services Ltd (MOFSL) gave three reasons why the stock is a 'Buy'. The foreign brokerage sees MOFSL as structural beneficiary of financialisation-led asset under management (AUM) expansion. UBS sees operating leverage driving non-linear earnings growth for MOFSL. In addition, a product mix shift towards AMC and private wealth businesses underpins potential re-rating, UBS said sending MOFSL shares 5 per cent higher in Friday's trade. Overall, UBS said, potential recurring revenues, improving mix and higher capital efficiency supports a structural upgrade in business quality towards premium asset management and wealth multiples.
Following the report, the MOFSL stock climbed 5.94 per cent to hit a high of Rs 880.90 on BSE, still offering 25 per cent upside, as per the UBS target price of Rs 1,100. "MOFSL looks well-positioned to capitalise on India’s structural financialisation, with exposure to high-growth AUM pools from wealth and asset management. We believe industry tailwinds remain robust and forecast mutual funds' AUM to grow at an 18 per cent CAGR by FY30E, with a 20 per cent-plus CAGR (FY30E) for HNI wealth and alternatives. The firm is transitioning to an AUM-led, annuity-driven model, where growth is linked to client assets rather than transaction volumes," UBS siad.
For FY26-29E, the foreign brokerage is expecting MOFSL AUM to expand at a 21 epr cent CAGR, driving a 19 per cent revenue CAGR. It said the market might be underappreciating MOFSL’s shift to higher quality, recurring wealth and distribution earnings, reducing broking cyclicality and driving a 22 per cent earnings CAGR over FY26-29E.
"Based on our PEG ratio analysis, we think the stock offers attractive risk-reward, trading at 15x one-year forward PE, slightly above its three-year average. We initiate coverage at Buy," it said.
UBS said MOFSL's historical multiples are of less relevance due to the evolving business model and increasing share of fee-based income.
"Our valuation is anchored to higher multiples for asset-light businesses (AMC ~28 times, private wealth 25 times and wealth 18 times) and a relatively lower multiple for capital markets (14 times) on FY28E earnings," UBS said.