Muthoot Finance Ltd (MUTHOOTFIN) AI Stock Analysis

• Market Cap: ₹1.59T
• Dividend Yield: 0.68%
• Average Volume (3M): 14.55K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.87
• Revenue Growth: 41.32%
• EPS Growth: 56.12%
• Country: IN
• Employees: 28,286
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 58.42
• Shares Outstanding: 401,468,480
• 10 Day Avg. Volume: 16,333
• 30 Day Avg. Volume: 14,548
• PEG Ratio: 0.75
• Price to Book (P/B): 3.20
• Price to Sales (P/S): 4.63
• P/FCF Ratio: -3.53
• 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: ₹4,000.00
• Price Target Upside: -2.30% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹3,667.00 ▼(-10.43% Downside)

Muthoot Finance Ltd's stock is supported by strong technical momentum and solid financial performance, despite liquidity challenges and a high debt-to-equity ratio. The valuation suggests the stock may be overvalued, which could limit upside potential.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates effective market penetration and demand for its financial products, supporting long-term business expansion.

Gross Profit Margin

A strong gross profit margin suggests that the company is effectively managing its costs, which supports sustainable profitability over time.

Market Position

As a leading NBFC in India, Muthoot Finance benefits from a strong market position, enhancing its ability to attract and retain customers in a competitive industry.

Negative Factors

High Debt-to-Equity Ratio

A high debt-to-equity ratio can increase financial risk, potentially impacting the company's ability to invest in growth opportunities and weather economic downturns.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, which could constrain the company's operational flexibility and investment capacity.

Decreasing EBITDA Margin

A declining EBITDA margin may signal increasing operational costs, potentially affecting profitability and necessitating cost management improvements.

Muthoot Finance Ltd Business Overview & Revenue Model

Company Description

Muthoot Finance Limited operates as a gold financing company in India. The company offers personal and business loans secured by gold jewelry, or gold loans primarily to individuals and micro finance. It also provides housing finance, gold coins, money transfer, and foreign exchange services; mutual funds and non-convertible debentures; health, home, vehicle, life, and travel insurance products; and vehicle, corporate, and SME loans. In addition, the company generates electric power through windmills in Tamilnadu. As of March 31, 2022, it operated through approximately 4,617 branches in 23 states and 6 Union Territories. The company was founded in 1887 and is headquartered in Kochi, India.

How the Company Makes Money

Muthoot Finance generates revenue primarily through the interest accrued on gold loans, which is its core business. Customers pledge their gold jewelry as collateral to secure loans, and the company charges interest on these loans, making it a significant source of income. Additionally, Muthoot Finance earns revenue from other financial products, such as personal loans, vehicle loans, and business loans. The company also engages in money transfer services and earns fees from remittances. Furthermore, it has ventured into insurance services, allowing it to diversify its income streams. Partnerships with various financial institutions and technology providers enhance its service offerings and operational efficiency, contributing to its overall earnings.

Muthoot Finance Ltd Financial Statement Overview

Summary

Muthoot Finance Ltd shows strong revenue growth and profitability, with a robust gross profit margin. However, the high debt-to-equity ratio and negative free cash flow indicate potential financial risks and liquidity challenges.

Income Statement

Muthoot Finance Ltd has demonstrated strong revenue growth with a significant increase in total revenue from the previous year. The gross profit margin is robust, indicating efficient cost management. Net profit margin is also healthy, reflecting strong profitability. However, the decrease in EBITDA margin suggests rising expenses or other operational challenges.

Balance Sheet

The company maintains a high debt-to-equity ratio, typical for the financial services industry, though it suggests potential risk if not managed properly. Return on equity is strong, showcasing effective use of equity to generate profits. The equity ratio is stable, indicating a good balance between equity and total assets.

Cash Flow

The cash flow statement reveals negative free cash flow, primarily due to high operating cash outflows, which may raise concerns about liquidity. The operating cash flow to net income ratio highlights potential issues in converting income into cash, though financing activities appear robust, suggesting reliance on external funding.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	222.58B	202.65B	150.86B	119.19B	122.17B	115.52B
Gross Profit	140.85B	128.53B	96.56B	77.10B	79.61B	74.52B
EBITDA	46.56B	73.82B	60.89B	50.01B	54.80B	51.99B
Net Income	61.55B	53.33B	43.24B	36.12B	40.17B	38.04B
Balance Sheet
Total Assets	1.49T	1.33T	964.69B	801.49B	763.16B	686.41B
Cash, Cash Equivalents and Short-Term Investments	116.56B	83.46B	62.72B	80.74B	100.36B	79.36B
Total Debt	1.13T	988.05B	678.72B	554.72B	543.62B	501.81B
Total Liabilities	1.18T	1.03T	707.15B	579.96B	571.79B	528.82B
Stockholders Equity	303.55B	293.67B	251.07B	216.66B	187.86B	155.75B
Cash Flow
Free Cash Flow	0.00	-265.93B	-139.76B	-29.45B	-16.94B	-79.06B
Operating Cash Flow	0.00	-263.76B	-137.54B	-28.04B	-15.96B	-78.14B
Investing Cash Flow	0.00	-13.76B	453.59M	1.81B	4.22B	395.81M
Financing Cash Flow	0.00	298.93B	119.58B	3.95B	34.45B	97.12B

Muthoot Finance Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4094.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MUTHOOTFIN, the sentiment is Positive. The current price of 4094.1 is above the 20-day moving average (MA) of 3907.11, above the 50-day MA of 3823.82, and above the 200-day MA of 2995.27, indicating a neutral trend. The MACD of 31.64 indicates Positive momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 60.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MUTHOOTFIN.

Muthoot Finance Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDBI	76 Outperform	₹1.07T	11.53	―	2.08%	11.31%	37.17%
MUTHOOTFIN	74 Outperform	₹1.59T	21.80	―	0.68%	41.32%	56.12%
CHOLAFIN	73 Outperform	₹1.38T	29.62	―	0.12%	27.30%	20.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHRIRAMFIN	67 Neutral	₹1.92T	20.95	―	1.08%	21.24%	22.61%
LICHSGFIN	55 Neutral	₹285.43B	5.17	―	1.87%	4.79%	13.08%
MANAPPURAM	49 Neutral	₹246.86B	60.48	―	0.80%	-3.68%	-80.12%

Muthoot Finance Ltd Corporate Events

Muthoot Finance Confirms SEBI Compliance on Dematerialised Securities

Muthoot Finance has reported compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, confirming that all securities dematerialized during the quarter ended 31 December 2025 have been duly listed on the stock exchanges where its existing securities are traded. The company, based on a certification from its registrar and share transfer agent MUFG Intime India Private Limited, also confirmed that physical security certificates received for dematerialisation were properly verified, mutilated, cancelled, and that the depositories’ names have been entered as registered owners within prescribed timelines, underscoring its adherence to regulatory requirements and robust governance in handling shareholder securities.