Muthoot Capital Services Ltd. (MUTHOOTCAP) AI Stock Analysis

• Market Cap: ₹3.77B
• Dividend Yield: N/A
• Average Volume (3M): 3.06K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 1.19
• Revenue Growth: 40.61%
• EPS Growth: -64.65%
• Country: IN
• Employees: 1,995
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 4.65
• Shares Outstanding: 16,447,533
• 10 Day Avg. Volume: 1,400
• 30 Day Avg. Volume: 3,063
• PEG Ratio: -0.14
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.89
• P/FCF Ratio: -0.37
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ₹220.00 ▼(-20.28% Downside)

The score is primarily held down by weakening financial performance (steep revenue decline, high leverage, and negative operating/free cash flows). Technicals also remain bearish with the stock trading below major moving averages and negative MACD, despite oversold RSI/Stoch readings. Valuation provides limited support given the relatively high P/E and no dividend yield data.

Positive Factors

Operating Profitability

Sustained double‑digit EBIT/EBITDA margins signal structural operating efficiency and pricing power in its lending operations. These margins provide a durable buffer to absorb credit costs or revenue softness, supporting long‑term earnings resilience as volumes recover.

Diversified Credit Franchise

A broad product mix across retail, vehicle and personal loans reduces concentration risk and supports cross‑sell. Coupled with an extensive branch footprint, this diversification sustains steady origination capacity and customer acquisition over months, aiding revenue rebuilding.

Group Affiliation & Distribution

Affiliation with the Muthoot Group and dealer partnerships deliver durable distribution advantages, brand trust, and referral flows. These structural channels lower customer acquisition costs and help scale lending volumes and product rollouts over the medium term.

Negative Factors

Steep Revenue Decline

A near‑50% revenue drop materially reduces scale economics and threatens margin sustainability as fixed costs remain. Unless lending volumes and disbursements recover, amortization of overheads and origination capacity will be impaired, capping earnings and growth for months.

High Financial Leverage

A debt/equity ratio above 4x raises refinancing, interest‑coverage and capital‑structure risk. High leverage limits strategic flexibility to expand the loan book or absorb credit shocks, increases sensitivity to rate moves, and constrains capital allocation over the medium term.

Weak Cash Generation

Persistent negative operating and free cash flows undermine ability to service debt, fund growth, or build reserves. Reliance on external funding raises cost and execution risk, making recovery and lending book expansion more difficult in the coming 2–6 months.

Muthoot Capital Services Ltd. Business Overview & Revenue Model

Company Description

Muthoot Capital Services Limited, a non-banking finance company (NBFC), provides fund and non-fund based financial services. The company offers two wheeler, used car, secured business, and loyalty loans; short-term and long-term deposit plans; and subordinated debts, as well as advisory services. It is also involved in buying loan portfolio of other NBFCs/micro finance companies. The company serves retail, corporate, and institutional customers through a network of branches in India. Muthoot Capital Services Limited was incorporated in 1994 and is based in Kochi, India.

How the Company Makes Money

Muthoot Capital Services Ltd. generates its revenue primarily through interest income from various lending products, including vehicle loans and personal loans. The company's business model relies on extending credit to customers, who pay back the loans with interest over time, thus providing a steady stream of income. Additionally, MuthootCAP may earn income through fees associated with loan processing and other financial services. Strategic partnerships with dealerships and local businesses enhance its ability to attract customers, while its established reputation within the Muthoot Group lends credibility and trust, further contributing to its earnings. The company also continuously seeks to expand its product offerings and improve customer service to drive growth in its revenue streams.

Muthoot Capital Services Ltd. Financial Statement Overview

Summary

Financial health appears pressured by a sharp revenue decline (-46.31%), high leverage (debt-to-equity 4.27), and weak cash generation with negative operating/free cash flows. Profitability margins remain relatively healthy, but reduced net margin (19.65%) and lower ROE (6.95%) weigh on the score.

Income Statement

Muthoot Capital Services Ltd. has experienced a significant decline in revenue, with a revenue growth rate of -46.31% in the most recent year. The gross profit margin remains strong at 100%, but the net profit margin has decreased to 19.65%. The EBIT and EBITDA margins are relatively healthy at 34.28% and 36.33%, respectively. However, the declining revenue trend and reduced profitability are concerning.

Balance Sheet

The company has a high debt-to-equity ratio of 4.27, indicating significant leverage, which poses a risk in terms of financial stability. The return on equity has decreased to 6.95%, reflecting reduced profitability for shareholders. The equity ratio stands at 18.36%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

The cash flow situation is challenging, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is -39.29, indicating cash flow issues. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow covers net income, but the overall cash flow position is weak.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.08B	4.63B	3.79B	4.30B	3.97B	4.93B
Gross Profit	2.59B	2.52B	1.73B	2.09B	1.88B	2.73B
EBITDA	1.85B	1.86B	2.37B	1.69B	-1.64B	1.52B
Net Income	302.76M	457.46M	1.23B	786.79M	-1.62B	514.60M
Balance Sheet
Total Assets	24.05B	35.85B	23.14B	24.35B	20.99B	25.60B
Cash, Cash Equivalents and Short-Term Investments	1.85B	4.00B	3.21B	5.50B	3.34B	6.05B
Total Debt	17.38B	28.12B	16.27B	18.54B	15.65B	18.92B
Total Liabilities	-6.58B	29.26B	17.02B	19.46B	16.87B	20.00B
Stockholders Equity	6.58B	6.58B	6.12B	4.89B	4.11B	5.60B
Cash Flow
Free Cash Flow	0.00	-11.01B	-872.68M	-470.00M	731.70M	6.69B
Operating Cash Flow	0.00	-10.97B	-824.88M	-464.12M	732.90M	6.70B
Investing Cash Flow	0.00	-76.50M	-630.82M	-165.99M	-93.90M	13.20M
Financing Cash Flow	0.00	12.20B	-2.51B	2.72B	-3.11B	-4.16B

Muthoot Capital Services Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 275.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MUTHOOTCAP, the sentiment is Negative. The current price of 275.95 is above the 20-day moving average (MA) of 254.71, above the 50-day MA of 265.55, and below the 200-day MA of 283.39, indicating a bearish trend. The MACD of -13.30 indicates Positive momentum. The RSI at 29.74 is Positive, neither overbought nor oversold. The STOCH value of 24.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MUTHOOTCAP.

Muthoot Capital Services Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MUTHOOTFIN	74 Outperform	₹1.54T	21.04	―	0.68%	41.32%	56.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PAISALO	65 Neutral	₹31.13B	14.88	―	0.29%	11.75%	-6.52%
INDOSTAR	50 Neutral	₹30.50B	4.17	―	―	-5.36%	469.19%
MANAPPURAM	49 Neutral	₹241.06B	59.06	―	0.80%	-3.68%	-80.12%
SPANDANA	48 Neutral	₹22.27B	-1.65	―	―	-45.13%	-1646.01%
MUTHOOTCAP	43 Neutral	₹3.77B	30.95	―	―	40.61%	-64.65%

Muthoot Capital Services Ltd. Corporate Events

Muthoot Capital Publishes Q3 and Nine-Month FY26 Unaudited Results in Newspapers

Muthoot Capital Services Ltd. has notified the stock exchanges that it has published its unaudited financial results for the quarter and nine months ended December 31, 2025, in the Business Standard (English) and Mangalam (Malayalam) newspapers, in compliance with SEBI’s Listing Obligations and Disclosure Requirements. By formally disseminating these results through national and regional dailies and filing the intimation under Regulation 30, the company reinforces its disclosure practices for equity and debt holders, supporting transparency for investors who track its quarterly performance and financial health.

Muthoot Capital Board Clears Q3 FY26 Results, Strengthens Audit and Risk Leadership

Muthoot Capital Services Ltd. has reported its unaudited financial results for the quarter and nine months ended 31 December 2025, as approved by its board of directors in a meeting held on 21 January 2026, and submitted the accompanying limited review report from its statutory auditors in compliance with Indian listing regulations. In the same meeting, the board strengthened its governance and risk oversight framework by appointing Krishnaraj S as Chief Internal Auditor for a three-year term effective 21 January 2026 and reappointing Umadevi Pazhoor Unnikrishnan as Chief Risk Officer for another three-year term starting 22 March 2026, signaling continued focus on internal controls and risk management for stakeholders in its listed securities.

Muthoot Capital Board Clears Q3 and Nine-Month FY26 Unaudited Results

Muthoot Capital Services Ltd., a Kochi-based NBFC focused on retail lending and capital market-related financial services, has its equity and multiple debt instruments listed on the BSE and NSE, reflecting its active presence in India’s listed debt and equity markets. The company announced that its board of directors has approved the unaudited financial results for the quarter and nine months ended December 31, 2025, along with the statutory auditors’ limited review report, a certificate of security cover, and statements on utilization and deviation of issue proceeds, signaling continued regulatory compliance and transparency to shareholders and debtholders under SEBI’s listing framework.

Muthoot Capital to Present Q3 and Nine-Month FY26 Results to Investors

Muthoot Capital Services Ltd. has announced that it will host an investors’ conference call on January 22, 2026 to discuss its unaudited financial results for the quarter and nine months ended December 31, 2025, and has circulated an accompanying investor presentation to the stock exchanges. The disclosure underscores the company’s ongoing compliance with SEBI’s listing regulations and its efforts to maintain transparency and regular engagement with equity and debt investors, who closely track such updates for insights into financial performance, asset quality and future strategy.

Muthoot Capital Raises ₹50 Crore via Short-Term Commercial Paper Issue

Muthoot Capital Services Ltd. has raised short-term funding by issuing commercial paper aggregating ₹50 crore on January 21, 2026, as disclosed to the stock exchanges under SEBI’s Listing Regulations. The 99-day instrument, carrying a discount rate of 8.7665% and rated CRISIL A1+, is priced at 97.6775, matures on April 30, 2026, and has been fully allotted to Vivriti Alpha Debt Fund, underscoring the company’s continued access to money market funding and support from institutional debt investors.

Muthoot Capital Strengthens Governance With New Chief Internal Auditor, CRO Reappointment

Muthoot Capital Services Ltd. has announced changes in its senior management, appointing chartered accountant Krishnaraj S as Chief Internal Auditor for a three-year term effective January 21–22, 2026, with responsibility for leading the internal audit function, leveraging his 19 years of experience in finance, risk and compliance. The company has also reappointed Mrs. Umadevi Pazhoor Unnikrishnan as Chief Risk Officer for a further three years from March 22, 2026, reinforcing its risk management and internal control framework at a time when governance standards and regulatory expectations for NBFCs remain elevated, signaling a continued focus on robust oversight for stakeholders, including investors and lenders.