RATING

RECOMMENDATION

Neutral

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  • Available in Depository:

  • NSDL

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  • Available for Investment:

  • Primary

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RATING

RECOMMENDATION

Neutral

Business Type

Emerging Leader

RATING

RECOMMENDATION

Neutral

Business Type

Emerging Leader

  • Motilal Oswal Home Finance Growth

Get info on Motilal Oswal Home Finance Unlisted Shares before buying, selling and investing - Read our Research report on Motilal Oswal Home Finance Peer Comparison Information like - Revenue Growth, EPS Growth, & Five Star Profitablity Ratios.

Motilal Oswal Home Finance Revenue Growth

Growth in %

  • 12.02%

    1 Year

  • NA

    3 Year

  • 4.19%

    5 Year

The company's interest revenue has been steadily dropping over the last four years, with a drop of roughly 29 crores in FY22. In FY21, disbursements were limited, which affected interest revenue, but in FY22, disbursements increased by 136%, putting the company back on track. The company's overall revenue has improved this year as a result of higher fee income and the recovery of some of its bad debts, although it has increased its provisions to be on the safe side. Even in FY19, the firm increased its provision for bad loans unexpectedly, resulting in a revenue decrease. While the company's earnings increased significantly, the amount of provision for FY20 and FY21 was lowered.

Motilal Oswal Home Finance Net Profit Growth(PAT)

Growth in %

  • 135.87%

    1 Year

  • NA

    3 Year

  • 2.94%

    5 Year

The company's net profit climbed by 136 percent in FY22, while personnel expenditures increased a bit, leading to an increase in net earnings. Overall, the home finance business had a more relaxed year in FY22 with the government's efforts to support and promote it. Even after the pandemic and its substantial impact on HFCs, early involvement by the government and RBI, as well as the opening of the economy, enabled the industry gradually get back on track, as seen by greater disbursements by HFCs in the second half of FY21.

Motilal Oswal Home Finance EPS Growth

Growth in %

  • 128.57%

    1 Year

  • NA

    3 Year

  • 31.95%

    5 Year

  • Motilal Oswal Home Finance Book Value Growth

Growth in %

  • 7.86%

    1 Year

  • 6.48%

    3 Year

  • 15.39%

    5 Year

The business's book value is fairly stable, however due to turbulent market conditions and RBI requirements, the company increased its statutory reserves in FY22, and 92,43,750 ESOPs were exercised throughout the year, contributing to an increase in equity. In FY15 there is huge growth in book value of the company due to increase in issued share capital of the company. While in FY16 company further raised its capital. But in recent years company has constant equity share capital.

Motilal Oswal Home Finance EBITDA Growth

Growth in %

  • 26.91%

    1 Year

  • NA

    3 Year

  • -0.94%

    5 Year

Motilal Oswal Home Finance Operating Profit Growth

Growth in %

  • 30.81%

    1 Year

  • NA

    3 Year

  • -1.20%

    5 Year

Motilal Oswal Home Finance Asset Growth

Growth in %

  • -3.45%

    1 Year

  • -6.26%

    3 Year

  • -3.82%

    5 Year

Company has seen significant fall in its loan book as initially in FY22 but still disbursements of the company improved in comparison to previous years, it grew by 136% y-o-y to Rs. 643 crores.. Business is geared up for growth in disbursements. Sales force expansion is currently underway.

Motilal Oswal Home Finance Cash Flow from Operations

Growth in %

  • -23.11%

    1 Year

  • NA

    3 Year

  • NA

    5 Year

The company's cash from operations is positive because they have borrowed from various banks, mutual funds and HNI investors. But on the other hand interest expenses and trade receivables of the company increased leading to fall in it.

  • Motilal Oswal Home Finance Sector Specific Ratios

Motilal Oswal Home Finance Gross NPA

MOHFL's Non-Performing Assets (NPAs) were Rs. 57 crores as of March 31, 2022, with NPA provisions of Rs. 26 crores. On total outstanding loans of Rs. 3,485 crores, MOHFL has 1.6% gross nonperforming assets (NPAs), compared to 2.2% on March 31, 2021.

MOHFL currently has a strong legal and collecting unit with  580-strong in-house collecting crew spread around the country. They also have a legal staff of 30 people,  consisting of attorneys who will pursue delinquent consumers through SARFAESI, section 138, and arbitration. As a result, the impact of the pandemic on the company has lessened with time, and the rate of recovery has accelerated.

Motilal Oswal Home Finance Capital Adequacy Ratio(CAR)

Company have a healthy capital adequacy ratio of 50% which is well above the minimum regulatory norms for Housing Finance Corporations. The company majorly deals in secured loans and advances. This suggest company have enough capital to cover its credit exposure.

Motilal Oswal Home Finance Net Interest Margin

Company has seen increase in interest margin, but the growth was not organic while the major reason behind this was decrease in interest expenses and income of the company. Our cost of borrowings for FY22 is at 8.2%, as a result spread and NIM have improved during the year.

Motilal Oswal Home Finance Net NPA

As of March 31, 2022, Net NPAs are 0.9% on total outstanding loans of Rs.3434.55 Cr. The company created strong provision coverage ratio(PCR) of 149% resulting in higher credit cost.

The company has offered restructuring to some of the customers whose cash flows were genuinely impacted. Furthermore, under the "Resolution Framework 1.0," the RBI had approved restructuring. Customers who had exited the moratorium but were still having trouble paying their bills on time were offered restructuring by the RBI, which included either lowering their EMI by extending the loan tenure by two years or granting top-up loans. During the year, MOHFL restructured loans to the tune of Rs. 174 crores, hence collection efficiency, which was subdued in first few months in FY2022 due to the pandemic, stood at 98%.

  • Motilal Oswal Home Finance Solvency Ratios


Motilal Oswal Home Finance D/E Ratio

D/E ratio of the company is constantly falling as company is increasing its reserves due to RBI norms and market volatility. But simultaneously debt of the company has increased due to increase in term loans from securitization and NHB Refinance.

Motilal Oswal Home Finance Current Ratio

During pandemic current ratio of Motilal Oswal was increasing due to increase in liquid assets say cash and balance with other banks. This increase was led by challenging marketing situation and RBI regulations.

Motilal Oswal Home Finance Quick Ratio

Motilal Oswal Home Finance Interest Coverage Ratio

  • Motilal Oswal Home Finance Operating Efficiency

Margin ratios of the company has improved, this suggest company has improved its operating efficiency and managing its income well. While in FY22 the major increase was led by in increase in income of the company by fees and commission and decrease in expenses, which includes employee benefits and rent due to work from home during pandemic.

Motilal Oswal Home Finance Operating Profit EBIT Margin(OPM)


Motilal Oswal Home Finance Profit Before Tax Margin (PBT Margin)

Motilal Oswal Home Finance Profit After Tax Margin (PAT Margin)


  • Motilal Oswal Home Finance Profitablity Ratio

Motilal Oswal Home Finance Return on Equity(RoE)

There is drastic increase in ROE from FY19 to FY22 because in 2019 the management decided to slow down growth to focus on strengthening the credit policies, creating a strong collection, legal and technical verticals, and curating a strong second line of management which have yielded good results.

Motilal Oswal Home Finance Return to Assets (RoA)

ROA of the company improved by 87 bps to 2.6% largely driven by start of a better utilization of existing infrastructure, control over delinquencies and lowest ever cost of funds. 

  • Motilal Oswal Home Finance Valuation Ratios

Motilal Oswal Home Finance Earning Yield

  • Motilal Oswal Home Finance NBFC's Ratios

Motilal Oswal Home Finance Tier 1 Capital Ratio

Tier 1 capital of the company is well above the required standard of RBI. This tells us company is having more of core capital with it, and it is more than enough to cover solvency risk of the company.

Motilal Oswal Home Finance Tier 2 Capital Ratio

As per RBI Tier 2 capital of the company should be less than Tier 1, while the total of Tier 1 and 2 should be more than 15%. The company is maintaining all the criteria's, and is a safe investment.   

Motilal Oswal Home Finance Tangibe Book Value

Tangible book value of the company is continuously increasing from previous 8 years, as company is constantly increasing its issued capital and reserves. In FY22 company's security premium reserves and tangible assets has seen a huge increase.

Motilal Oswal Home Finance AUM

AUM was marginally lower than FY21. The loan book for FY22 is Rs.3485 crore with a slighter decrease from the previous year. The reduction was on account of a Direct Assignment transaction coupled with repayments led by voluntary foreclosure and accrual of CLSS subsidy. The company transferred many loans to the investors in the form of securities, which reduced their loan book.

Motilal Oswal Home Finance AUM Growth

MOHF’s AUM and disbursements grew at a CAGR of 138% and 59% respectively between FY15 and FY18, largely driven by branch expansion from zero branches in FY15 to 120 branches in FY18. After FY19, the management decided to slow down growth to focus on strengthening the credit policies and creating a strong collection, legal and technical verticals, and curating a strong second line of management-all fundamental building blocks required to operate a lending business at scale this led to fall in disbursement and AUM.