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Complete SWOT Analysis of Motilal Oswal Financial Services – An Indian Financial Services Company

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The last time we saw the updated business model of Bajaj Finance. This time we will explain the SWOT Analysis of Motilal Oswal Financial Services.

Motilal Oswal Financial Services is a financial services firm providing a range of financial  products and services. In 1987 the company was founded by Motilal Ostwal and Raamdeo Agarwal. Motilal Oswal Financial Services is listed on BSE and NSE stock exchanges.

The marketing strategy of Motilal Oswal Financial Services includes traditional as well as digital marketing. In today’s time, digital marketing is very important for reaching out to customers as everything is shifting towards digital. If you want to learn digital marketing and its scope, do check out Free Digital Marketing Masterclass by Karan Shah, the founder and CEO of IIDE.

Before we dive into the SWOT Analysis of Motilal Oswal Financial Services, let’s take a look at the company, its history, finances, products, and opponents.

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About Motilal Oswal Financial Services

An Indian financial services company named Motilal Oswal Financial Services Limited is offering a range of financial products and services including broking, mutual funds, wealth management etc. The house was founded in 1987 and it slowly entered into investment banking in 2005 and private equity fund in 2006. 

The company offers online trading to its customers through a tie-up with SBI in 2006, PNB in 2007 and Axis Bank in 2013. It also has a mutual fund business named Motilal Oswal Asset Management Company.

Quick Stats on Motilal Oswal Financial Services
Founder Motilal Oswal
Year Founded 1987
Origin United Kingdom
No. of Employees 3,800+
Company Type Public
Market Cap Rs 13,151.65 Crore (2022)
Annual Revenue N/A
Net Income/ Profit Rs 712.40 Crore (2021)

 

Services By Motilal Oswal Financial Services

  • Broking
  • Mutual Funds
  • Wealth management


Competitors of Motilal Oswal Financial Services

  • Certent Equity Compensation Management
  • Carta
  • Pulley
  • Vestd
  • Shareworks by Morgan Stanley


After understanding the core of the corporation, let us now proceed to the SWOT analysis of Motilal Oswal Financial Services. 


SWOT Analysis of Motilal Oswal Financial Services

Motilal Oswal Financial Services is a part of Bajaj Holdings & Investments Limited, an Indian financial services company focused on lending, asset management, wealth management, and insurance in the Indian financial ecosystem. We shall do a thorough SWOT Analysis of Motilal Oswal Financial Services to gain insights into the company’s strengths, weaknesses, opportunities, and threats. 

To better understand the SWOT analysis of Motilal Oswal Financial Services, refer to the infographic below:

SWOT Analysis of Motilal Oswal Financial Services - SWOT Infographics of Motilal Oswal Financial Services

Let’s proceed further with expanding on the strengths of the Motilal Oswal Financial Services from the SWOT analysis of Motilal Oswal Financial Services

Strengths of Motilal Oswal Financial Services

Strengths express what an organization excels at doing and what differentiates it from the competition: a strong brand, loyal customer base, a strong balance sheet, unique technology, and so on. Motilal Oswal Financial Services must then decide on how to use those outcomes to attract emerging investors.

  • Large Range of Financial Products: One of the strengths of Motilal Oswal Financial Services is its ability to offer a wide range of financial services to its massive customer base. Securities and investments were created to provide its customer base with short-term or long-term financial gains.
  • High Revenue Turnover: Motilal Oswal Financial Services has had a steady increase over the years in revenue even during and after the advent of Covid 19. Revenue is upheld by an enormous extent of good management structure, marketing strategies, solid financial product development, and cost-cutting techniques. 
  • Solid Capital Structure: Maintaining a growing capital structure is one of the base objectives of a business that Motilal Oswal Financial Services is upholding. In the course of the last five fiscal years, the gathering has raised Rs 14908 crores of value which has fundamentally expanded the net worth of the organization.
  • High Returns on Investment (ROI): Over the past five years now, Motilal Oswal Financial Services has been giving its shareholders high returns on investments through its stocks traded on the exchange Year on Year(YoY). 
  • Quality Financial Services: Another strength of Motilal Oswal Financial Services is that its customers get quick services and this is one of the unique strengths of Motilal Oswal Financial Services which provides the customers with one-stop-shop financial offers in three minutes which has now reduced to 3 seconds.
  • Financial Growth: MOFS is expecting 50% financial growth from sectors including IT, oil and gas which will contribute about 30-40% growth in the coming quarter. Motilal Oswal Financial Services will be a big show to watch out for in the Q4 earnings season.

Weaknesses of Motilal Oswal Financial Services

Weaknesses limit an organization from achieving its ideal level. To remain competitive they are part of the business that needs improvement: for example, a weak brand, higher average turnover, high levels of debt, an inadequate supply chain, or lack of capital.

  • Decreased Mutual Funds Holdings: The mutual funds holding of Motilal Oswal Financial Services has dropped drastically in the past quarters. Mutual funds diminished their shareholding last quarter, a decline in net profit with falling profit margin quarter on quarter(QoQ), companies with high gearing ratio, companies with weak financials.
  • Non-Performing Assets of Motilal Oswal Financial Services: The major setback of the financial service sector is NPAs (Non-Performing Assets). Typically, NPAs denote loans that are not recoverable. This inevitably leads to financial losses for Motilal Oswal Financial Services. 
  • Lack of Coverage in Rural Areas of Financial Products: It has been revealed that the financial service industry focuses more on urban areas in most countries, while rural regions are ignored. In the banking sector, this is a considerable weakness.


Opportunities for Motilal Oswal Financial Services

Opportunities refer to favourable external components that could give an organization a competitive edge. For example, if a country cuts tariffs, increasing sales and market share.

  • Global Opportunities: A major opportunity for financial service players in the Indian market is the global financial service market, it is inarguably that the global market is worth billions of dollars. Motilal Oswal Financial Services is mainly focused on the Indian market, so it needs to increase its reach outside the Indian market as well making it gain more customers.
  • Rise in the Private Banking Sector Globally: The financial service industry around the world is highly regulated by the public sector authorities and their respective central banks. With the emergence of private sector banks, this sector is experiencing structural and functional shifts, primarily due to the adaptation of new technology and intensified competition, thereby benefiting end customers.
  • Advancements in Technology in the Banking Sector: The banking industry has always functioned based on technology. This is evident that digital services provided by banks today are based on technology. Thus, banks should continue to adopt the latest technological advances. To draw future generations, they should focus on putting out newer banking and financial service using digital marketing skills.

Wait a minute. You might be thinking that what are digital marketing skills? Well, digital marketing skills include various subparts of digital marketing such as website building, SEO, social media marketing, e-commerce, online reputation and many more. You can check out IIDE 13+ short term courses in digital marketing which includes all of these. These courses can get you up to speed in as little as 5 days in a range of digital skills and expertise. 


Threats to Motilal Oswal Financial Services

Threats refer to components that have the potential to damage an organization. For example, unfavourable government policies, and a drastic decline in revenue. Other common threats include things like rising costs for materials, increasing competition, tight labour supply, and so on.

  • Government Policies: Government regulations can directly affect the banking sector of a country, these government policies might be unfavourable for Motilal Oswal Financial Services. 
  • Global Uncertainty in the Financial Ecosystem: The world is going through difficult economic times at the moment. The international banking sector has all been affected by trade wars, protectionist policies, and economic downturns. If the world’s economic conditions do not change, the financial service industry will face a bleak future.
  • Lack of Proper Cyber Security Systems: The current banking industry relies entirely on the cyber-world. Whether it is data storage, monetary transactions, or personal information, everything is stored digitally. This makes the banking sector a primary target for hackers who are seeking to benefit financially by leveraging flaws in the bank’s digital infrastructure. Banks need to take effective cybersecurity steps to safeguard their records, they will face a significant cyberspace threat.


This ends our study on the SWOT analysis of Motilal Oswal Financial Services. Let us conclude our learning below.

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To Conclude

The financial service industry is one of the fastest-changing and growing industries in the world. Financial service companies are adopting new technologies to increase their business. They have also contributed in general to the world’s economic growth. 

But their shortcomings, such as Non-performing Assets (NPAs) and a lack of adequate rural presence, must be tackled. The exciting news is that by providing quality service and growing into untapped regions, they will work towards turning these weaknesses into strengths and threats into opportunities.

With a huge increase in the service industry. There is a very high competition where marketing plays a crucial role-taking advantage of technology not merely in this industry in which every other company is focusing on digital marketing to rise ahead of each other.  If you have the curiosity to learn you may check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

We hope this blog on the SWOT analysis of Motilal Oswal Financial Services has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of Motilal Oswal Financial Services, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for investing your valuable time to read this, and do share your thoughts on this case study of the SWOT analysis of Motilal Oswal Financial Services in the comments section below. 

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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