Muthoot Capital Services Ltd. (MUTHOOTCAP) AI Stock Analysis

• Market Cap: ₹4.54B
• Dividend Yield: N/A
• Average Volume (3M): 3.06K
• Price to Earnings (P/E): 26.7
• 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: 1,400
• 30 Day Avg. Volume: 3,063
• 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: 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: 48 Neutral
• Price Target: ₹271.00 ▼(-1.79% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues, high leverage, and negative cash flows. Technical analysis indicates a bearish trend, and valuation metrics suggest moderate pricing without dividend support. These factors collectively result in a below-average stock score.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management and pricing power, which can support profitability even amid revenue challenges.

Healthy EBIT and EBITDA Margins

Healthy EBIT and EBITDA margins suggest operational efficiency, which can provide resilience against market fluctuations and support long-term growth.

Customer-Centric Approach

A customer-centric approach enhances customer loyalty and retention, potentially leading to sustained revenue streams and competitive advantage.

Negative Factors

High Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to interest rate changes, potentially impacting long-term stability.

Negative Cash Flows

Negative cash flows indicate liquidity issues, which can hinder the company's ability to invest in growth opportunities and meet financial obligations.

Declining Revenue

Declining revenue suggests weakening demand or competitive pressures, which can erode market position and affect long-term profitability.

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

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	5.08B	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: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 275.50, above the 50-day MA of 274.66, and below the 200-day MA of 284.13, indicating a neutral trend. The MACD of 0.95 indicates Negative momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 34.65 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	₹1.53T	21.00	―	0.68%	41.32%	56.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PAISALO	65 Neutral	₹30.99B	14.81	―	0.29%	11.75%	-6.52%
INDOSTAR	50 Neutral	₹31.80B	4.97	―	―	-5.36%	469.19%
MANAPPURAM	49 Neutral	₹241.40B	53.75	―	0.80%	-3.68%	-80.12%
MUTHOOTCAP	48 Neutral	₹4.54B	26.65	―	―	40.61%	-64.65%
SPANDANA	48 Neutral	₹21.76B	-1.23	―	―	-45.13%	-1646.01%

Muthoot Capital Services Ltd. Corporate Events

Muthoot Capital Releases Investor Call Recording on Financial Results

Muthoot Capital Services Ltd. announced the availability of an audio recording from its recent Investor Conference Call, which discussed the unaudited financial results for the quarter and half-year ending September 30, 2025. This move is part of the company’s commitment to transparency and keeping stakeholders informed about its financial performance, potentially impacting investor confidence and market positioning.

Muthoot Capital Services Releases Q2 2025 Financial Results

Muthoot Capital Services Limited announced its unaudited financial results for the quarter and half-year ending September 30, 2025. The Board of Directors approved these results during a meeting held on October 15, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and compliance with regulatory standards, potentially impacting its market positioning and investor confidence.

Muthoot Capital Services Announces Q2 2025 Financial Results

Muthoot Capital Services Limited announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025, during a board meeting held on October 15, 2025. The results, reviewed by the statutory auditors, reflect the company’s financial performance and compliance with regulatory standards, potentially impacting its market positioning and stakeholder confidence.

Muthoot Capital Services to Present Q2 Financial Results

Muthoot Capital Services Limited announced an upcoming Investor Presentation to discuss its unaudited financial results for the quarter and half-year ending September 30, 2025. This presentation, scheduled for October 16, 2025, aims to provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholder perceptions and market positioning.