Abstract
Purpose: Over the last two decades, globalization and technology advancements in financial markets have resulted in a surge of individual investors, granting them improved access to the financial markets. However, the large range of investment avenues available makes the investors’ decision-making process more complex. To make investors’ lives easier, a stockbroker functions as a liaison between the investor and the stock exchange, allowing them to make more precise investment decisions that are more advantageous for them. Motilal Oswal Financial Services Ltd (MOFSL) is the leading stockbroker firm that offers a wide range of financial services and is the popular choice among Indian investors. To attract new clients and retain the trust of existing customers, the firm needs to maintain a good financial track record. The investment advisor’s financial performance helps to a large measure in determining the firm’s overall financial health. This paper attempts to analyze the financial performance of Motilal Oswal Financial Services Ltd, for the past three fiscal years i.e., 2018-19, 2019-20, and 2020-21. Design/Methodology/Approach: The technique of ratio analysis has been adopted to assess the financial performance of MOFSL using secondary data. Also, the correlation between profitability and efficiency of MOFSL was examined using Pearson correlation. Moreover, SWOC analysis is performed to gain a better understanding of the company’s strategic position. Findings/Result: The interpretation of the ratios calculated, given a favorable impression of the financial status of the company and the tested hypothesis of correlation significance has discoursed that there is no significant correlation between profitability and efficiency of MOFSL. Further, the result of the SWOC investigation has offered new insights into the business. It can be concluded from the study that in the FY 2020-21, the company has outperformed in terms of profitability, liquidity, solvency, and efficiency ratios. Originality/Value: To acknowledge MOFSL’s growing popularity in the financial services industry, research was conducted in which the company’s financial performance was evaluated using four key financial indicators: profitability, liquidity, solvency, and efficiency ratios. Paper Type: A case study analysis based on empirical data.
Highlights
Stockbrokers form a significant part of the country’s investment advisory landscape
The findings of the study are as follows: (1) The SWOC analysis performed on Motilal Oswal Financial Services Ltd (MOFSL) has brought to light enormous strengths that include a good brand image, wider distribution networks, and excellent financial results through which the company can seize the opportunity to conquer the potential market and attract more clients to the customer base
(5) The sig (2-tailed) test has revealed that there is no significant correlation between profitability and efficiency of MOFSL. (6) The company has stood strong during the volatile year 2020-21 while maintaining the operating parameters
Summary
Stockbrokers form a significant part of the country’s investment advisory landscape. A stockbroker is a financial market representative, who buys and sells the shares on behalf of clients and is known as an investment advisor. The majority of stockbrokers are engaged in the brokerage business and deal with a variety of retail investors and institutional clients. A broker with extensive experience and knowledge about the ‘ins and outs’ of the stock market can assist an investor in making the best decision possible [1]. The broker must provide adequate and right information about the stocks as well as make short-and medium-term investment recommendations to investors, and confirm the purchase and sale of securities rapidly. The broker is required to follow the SEBI’s code of conduct. This article intends to provide a sneak peek into the firm while attempting to examine financial indicators to comprehend the company’s long-term viability and establish MOFSL’s profitability performance using ratio analysis. It is used by the stakeholders to compare the outcomes with that of other organizations, and it helps to make better investment decisions
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