MOTILAL OSWAL HOME FINANCE LIMITED

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₹ 10

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₹ 12.5

Overvalued

Company Overview

Motilal Oswal Home Finance Limited (formerly Aspire Home Finance Corporation Ltd) is a fast growing housing finance company. The company is a subsidiary of Motilal Oswal Financial Services limited and was incorporated on 1st October 2013. 

Business Model 

MOHFL operates in the ‘affordable housing finance’ segment where average loan size remains below ₹ 25 lacs. The company has 104 branches across 9 states (Maharashtra, Gujarat, Madhya Pradesh, Karnataka, Rajasthan, Chhattisgarh, Tamil Nadu, Telangana and Andhra Pradesh). 

As on 31-March-2021, MOHFL reported total income of ₹ 545 crores with net profit of ₹ 40 crores. The loan book of the company stood at ₹ 3512 crores and the average ticket size of the loan was ₹8.6 lacs. The gross NPA and net NPA figures stood at 2.2% and 1.52% respectively.   The company’s cost of borrowing and NIM was 9.25% and 6.1% respectively.    

The state wise loan book mix of the company consisted of Maharashtra (66%), Gujarat (13%), Madhya Pradesh (8%), Tamil Nadu (4%), Rajasthan (3%), Karnataka (3%), Telangana (2%), Chhattisgarh (1%).

The target customers of the company include lower and middle income class families, self-employed, cash salaried category where formal income proofs and credit reports are not easily available, and the repayment capacity of such families are appraised based on their cash flows and internal score cards.

The pricing of each loan is linked to the credit score and credit assessment report. This methodology enables MOHFL to price risk correctly by offering finer interest rates to deserving families, where credit risk is low and charge a higher rate of interest where credit risk is high. The credit score parameters, risk weightage, customer segmentation, collateral technical policy and rate of interest bands are reviewed timely, modified in lines with the changing risk profile of the customers and aligned with the prevailing market rates respectively.

Registered Address

The registered office of the company is located at Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai.

Symbol:Motilal Oswal Home Finance Ltd.
Face Value (₹):1
ISIN:INE658R01011
Demat Status:NSDL & CDSL
Lot Size:1000 Shares

Board of Directors

  • Mr. Molal Oswal – Chairman & Non-Execuve Director
  • Mr. Raamdeo Agarawal – Non-Execuve Director
  • Mr. Navin Agarwal – Non-Execuve Director
  • Mr. Sanjaya Kulkarni – Independent Director
  • Mrs. Rekha Shah – Independent Director

Key Business Highlights

  • Motilal Oswal Housing Finance Ltd ranks amongst stable companies in the housing finance segment.
  • MOHFL has lowest NPAs in the industry with Gross NPA of 2.2% and Net NPA of 1.52% (FY 2021) and rated AA- (stable outlook) by CRISIL. 
  • Backed by reputed parent Motilal Oswal Group.

Financial Highlights

Particulars2020-212019-202018-192017-18
Total Income (₹ Crores) 545.52576.44648.41670.75
PAT (₹ Crores) 40.2339.08-136.8819.21
Diluted EPS 0.070.06-0.250.04
Book Value per Share (₹) 1.511.441.381.46
Equity (₹ Crores) 909.54867.39826.61760.67

Financial Charts

Historical Chart

Shareholding Pattern

Peer Comparison

CompanyMarket Cap (₹ Crores)Profitability Margin (%)ROCE (%)ROE (%)D/E RatioP/E RatioP/B RatioBook Value per Share (₹)
MOTILAL OSWAL HOME FINANCE LTD8545.347.00%45.00%4.53%3.38202.869.621.51
INDIABULLS HOUSING FINANCE LTD7230.0612.23%9.25%7.44%4.266.260.45350.11
REPCO HOME FINANCE LTD1216.5120.94%9.91%14.20%4.835.570.58350.60

Media Updates

“Bonus Share Issue Propose in June 2021”

The Board of Directors, at its meeting held on 14th June, 2021 has recommended for issuance of
bonus shares in the proportion of 1:2 [i.e.1 (One) new fully paid up equity share for every 2 (Two)
existing equity shares held].

Frequently Asked Questions (FAQs) on Motilal Oswal Unlisted Shares

The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid.

The procedure to buy the Motilal Oswal Housing Finance shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller. 

When the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day. 

In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.

The Motilal Oswal Housing Finance shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.

The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for Motilal Oswal Housing Finance, please visit the stock page on our website: www.delistedstocks.in

There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares. 

Before IPO, there is no restriction on sale and transfer of your Motilal Oswal Housing Finance unlisted shares. 

But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange.

Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares. 

If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. 

If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.

The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI.  The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors.

The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange. 

Yes, NRI’s can also buy and sell Motilal Oswal Housing Finance unlisted shares just like domestic investors. But their investment is on a non-repatriable basis. 

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