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Motilal Oswal – Avoid

August 23, 2007

We recommend Value Investors to stay away from the IPO of Motilal Oswal. It is an expensive issue being offered at a P/E higher than PSU asset classes. Moreover, we know the internal matter about management and its acquisition of Cochin based Peninsular Capital Markets and thus give a ZERO rating to the management of Motilal Oswal. Also the network of offices that it is banking on is just a SHELL which and when if cracked is EMPTY.

Here is a research report from HDFC which expresses concern about the valuations at which the IPO is priced.

Short Term and Risky Investors can apply but Value Investors including ourselves are staying away from this issue.

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