Key Events This Week
Feb 9: Stock opens at Rs.798.80, up 2.50% on strong volume
Feb 10: Valuation shifts signal renewed price attractiveness
Feb 12: Bearish technical shift amid mixed momentum signals
Feb 13: Week closes at Rs.784.20, down 2.42% on final session
Strong Start on 9 February: Early Momentum Builds
Motilal Oswal Financial Services began the week on a positive note, closing at Rs.798.80 on 9 February 2026, a gain of 2.50% from the previous close. This rise was supported by a robust volume of 40,755 shares and coincided with a Sensex gain of 1.04%, closing at 37,113.23. The stock’s outperformance on this day set an optimistic tone, reflecting renewed investor interest ahead of valuation updates.
Valuation Reset on 10 February Enhances Price Appeal
On 10 February, MOFSL advanced further to Rs.822.30, up 2.94%, supported by increased volume of 54,501 shares. This price movement aligned with a modest Sensex gain of 0.25%. The day’s key development was a valuation shift signalling improved price attractiveness. The company’s price-to-earnings ratio moderated to 23.59, moving from an expensive to a fair valuation grade relative to peers such as ICICI Prudential Life (P/E 68.5) and One 97 Communications (P/E 150.62).
The price-to-book value ratio of 3.71 and an enterprise value to EBITDA multiple of 14.11 further reinforced this fair valuation stance. Profitability metrics remained strong, with a return on capital employed of 18.29% and return on equity of 15.73%, underscoring efficient capital utilisation. This valuation reset suggested a more balanced risk-reward profile, attracting value-conscious investors despite a recent downgrade in the company’s Mojo Grade to Sell.
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Price Correction and Bearish Technical Shift on 11-12 February
Following the valuation-driven rally, the stock experienced a pullback on 11 February, closing at Rs.809.20, down 1.59% on volume of 44,767 shares. The Sensex continued to rise modestly by 0.13%, closing at 37,256.72. This divergence suggested some profit-taking or technical resistance despite broader market strength.
On 12 February, MOFSL declined further by 0.69% to Rs.803.65 on lower volume of 26,925 shares, while the Sensex fell 0.56% to 37,049.40. The day’s key narrative was a bearish technical shift, with the stock’s daily moving averages turning negative and momentum indicators such as MACD and KST signalling weakening trends. The weekly RSI remained bullish, indicating some short-term support, but the overall technical outlook deteriorated, reinforcing the Mojo Grade downgrade to Sell.
Week Ends with Decline Amid Broader Market Weakness
On the final trading day, 13 February, MOFSL closed at Rs.784.20, down 2.42% on volume of 51,273 shares. This decline outpaced the Sensex’s 1.40% drop to 36,532.48, reflecting increased selling pressure. The stock traded within a wide range but remained above its 52-week low of Rs.487.85, highlighting ongoing volatility. Technical indicators suggested caution, with bearish momentum dominating despite some intermittent buying interest as indicated by the weekly On-Balance Volume.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.798.80 | +2.50% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.822.30 | +2.94% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.809.20 | -1.59% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.803.65 | -0.69% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.784.20 | -2.42% | 36,532.48 | -1.40% |
Key Takeaways
Valuation Reset Provides Price Appeal: The shift from an expensive to a fair valuation grade, with a P/E of 23.59 and P/BV of 3.71, improved the stock’s attractiveness relative to peers. Strong profitability metrics (ROCE 18.29%, ROE 15.73%) support this valuation framework.
Technical Indicators Signal Caution: Despite some short-term bullish momentum on weekly RSI and OBV, the overall technical trend turned bearish with daily moving averages and MACD indicators weakening. This contributed to the Mojo Grade downgrade to Sell.
Price Volatility Reflects Mixed Sentiment: The stock’s price fluctuated significantly during the week, with gains early on followed by a correction amid broader market weakness. The final weekly gain of 0.62% outperformed the Sensex’s 0.54% decline, but the downward pressure on the last two days highlights near-term risks.
Long-Term Outperformance Remains Intact: Despite recent volatility, MOFSL’s long-term returns remain impressive, with cumulative gains far exceeding the Sensex over five and ten years, underscoring the company’s fundamental strength.
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Conclusion
Motilal Oswal Financial Services Ltd’s week was defined by a nuanced interplay of valuation improvements and technical headwinds. The recalibration to a fair valuation grade enhanced the stock’s price appeal, supported by solid profitability and a more reasonable price multiple relative to peers. However, the bearish technical shift and weakening momentum indicators introduced caution, reflected in the stock’s price correction during the latter half of the week.
While the stock outperformed the Sensex over the week, the mixed signals suggest that investors should remain vigilant. The company’s strong long-term fundamentals and historical outperformance provide a foundation of confidence, but near-term volatility and sector-specific risks warrant careful monitoring. Overall, MOFSL stands at a critical juncture where valuation attractiveness meets technical uncertainty, shaping a complex investment landscape for market participants.
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