Muthoot Capital Services Ltd. (MUTHOOTCAP) AI Stock Analysis

• Market Cap: ₹4.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.37K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.12
• Revenue Growth: 40.61%
• EPS Growth: -64.65%
• Country: IN
• Employees: 1,995
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.72
• Shares Outstanding: 16,447,533
• 10 Day Avg. Volume: 1,821
• 30 Day Avg. Volume: 1,366
• PEG Ratio: -0.14
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.87
• 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: ₹271.00
• Price Target Upside: 4.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: ₹271.00 ▲(4.94% Upside)

The most significant factor affecting the stock score is the company's weak financial performance, characterized by declining revenues, high leverage, and negative cash flows. Technical indicators also suggest a bearish trend, further impacting the score. The valuation is moderate, but the lack of a dividend yield reduces its appeal. Overall, the stock faces considerable challenges that need to be addressed to improve its outlook.

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 revenue primarily through interest income from its various lending products, including vehicle loans and personal loans. The company charges interest on the loans it disburses, which constitutes a significant portion of its revenue. Additionally, MuthootCAP may earn income through processing fees, late fees, and other service charges associated with its financing solutions. The company's ability to attract and retain customers, as well as its partnerships with vehicle manufacturers and dealerships for financing options, further enhances its revenue streams. Market conditions, regulatory frameworks, and the overall economic environment also play crucial roles in influencing the company's profitability.

Muthoot Capital Services Ltd. Financial Statement Overview

Summary

Muthoot Capital Services Ltd. faces significant challenges with declining revenues and profitability, high leverage, and negative cash flows. While some profitability metrics remain strong, the overall financial health is concerning due to the high debt levels and cash flow issues.

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	5.20B	4.74B	2.43B	4.41B	3.84B	4.93B
Gross Profit	3.96B	4.10B	368.75M	2.18B	1.74B	2.38B
EBITDA	822.28M	845.50M	1.89B	2.52B	-670.40M	2.53B
Net Income	302.79M	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	5.74B	3.34B	6.05B
Total Debt	17.38B	28.09B	16.27B	18.54B	15.65B	18.92B
Total Liabilities	17.81B	29.26B	17.02B	19.46B	16.87B	20.00B
Stockholders Equity	6.23B	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: 258.25
• 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 258.25 is below the 20-day moving average (MA) of 275.89, below the 50-day MA of 275.40, and below the 200-day MA of 288.23, indicating a bearish trend. The MACD of -4.57 indicates Positive momentum. The RSI at 28.84 is Positive, neither overbought nor oversold. The STOCH value of 30.39 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	73 Outperform	₹1.34T	21.74	―	0.78%	38.22%	37.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PAISALO	60 Neutral	₹35.26B	17.09	―	0.26%	13.28%	-6.07%
MANAPPURAM	56 Neutral	₹240.47B	30.06	―	1.06%	4.83%	-64.41%
INDOSTAR	51 Neutral	₹31.92B	4.96	―	―	-3.23%	528.67%
MUTHOOTCAP	48 Neutral	₹4.25B	24.79	―	―	40.61%	-64.65%
SPANDANA	44 Neutral	₹21.43B	26.37	―	―	-26.77%	-431.45%