Motilal Oswal Share Skyrockets After UBS Sees 32% Upside Potential with ₹1,150 Target Price

Motilal Oswal Financial Services shares saw a sharp rise on June 12, the last trading day of the week, after a major global brokerage firm expressed confidence in the company’s future growth. This positive sentiment attracted investor attention, especially as the stock witnessed sharp fluctuations during the trading session.

After UBS initiated coverage with a “buy” rating, the stock rose more than 5% during the day and reached around ₹873 on the NSE. The brokerage has set a target price of ₹1,150, indicating an upside of approximately 32% from current levels. By noon, the stock was still up approximately 3.84% and trading near ₹863.50, indicating continued investor interest.

UBS believes the company is well-positioned to benefit from the growing trend of financial investments in India. Motilal Oswal operates across multiple segments, including wealth management, asset management, and capital markets, providing it with a balanced and stable business model. Of these, wealth and asset management is expected to play a key role in future growth as more people invest their money in financial products.

The brokerage estimates that India’s mutual fund industry could grow at a CAGR of 18% by 2030. Additionally, investments by high-net-worth individuals could grow at a CAGR of over 20%, creating strong long-term opportunities for the company.

One of the key changes the company is experiencing is a shift in how it generates revenue. Previously, a significant portion of its income depended on trading activity, which was often affected by market fluctuations. Now, the company is moving to a model where earnings are linked to assets under management.

This new approach means that earnings will be more dependent on the total value of client investments rather than daily trading volume. Such a model can deliver more stable and predictable revenue over time, even during market fluctuations.

UBS expects strong performance in the coming years, with assets under management expected to grow at a 21% CAGR between FY2026 and FY2029. Revenue is expected to grow at approximately 19% annually, while profits could grow at a 22% CAGR during the same period. The increasing share of fee-based income is also expected to improve overall profitability.

The brokerage has highlighted that traditional valuation methods may not fully capture the company’s changing business mix. As fee-based and asset-light businesses grow, they deserve higher valuation multiples. UBS has placed a higher weighting on these stable income segments, while maintaining a cautious view on capital markets-related earnings.