Analysts Just Made A Notable Upgrade To Their Motilal Oswal Financial Services Limited (NSE:MOTILALOFS) Forecasts

Motilal Oswal Financial Services Limited (NSE:MOTILALOFS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on Motilal Oswal Financial Services too, with the stock up 13% to ₹1,406 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the twin analysts covering Motilal Oswal Financial Services are now predicting revenues of ₹65b in 2024. If met, this would reflect a sizeable 47% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 23% to ₹120. Previously, the analysts had been modelling revenues of ₹48b and earnings per share (EPS) of ₹97.87 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Motilal Oswal Financial Services

With these upgrades, we're not surprised to see that the analysts have lifted their price target 30% to ₹1,434 per share.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Motilal Oswal Financial Services' rate of growth is expected to accelerate meaningfully, with the forecast 47% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 18% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Motilal Oswal Financial Services is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Motilal Oswal Financial Services.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential concern with Motilal Oswal Financial Services, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.