Muthoot Finance Ltd (MUTHOOTFIN) AI Stock Analysis

• Market Cap: ₹1.11T
• Dividend Yield: 1.03%
• Average Volume (3M): 27.28K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.85
• Revenue Growth: 38.22%
• EPS Growth: 37.80%
• Country: IN
• Employees: 28,286
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 50.97
• Shares Outstanding: 401,468,480
• 10 Day Avg. Volume: 65,418
• 30 Day Avg. Volume: 27,281
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹2,823.75
• Price Target Upside: 2.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: ₹3,075.00 ▲(11.51% Upside)

Muthoot Finance Ltd's strong financial performance, particularly in revenue growth and profitability, is a significant strength. However, high leverage and negative free cash flow pose liquidity risks. The technical analysis supports a bullish trend, while the valuation appears fair. The absence of earnings call and corporate events data limits further insights.

Muthoot Finance Ltd Business Overview & Revenue Model

Company Description

Muthoot Finance Ltd (MUTHOOTFIN) is one of India's largest gold financing companies in terms of loan portfolio. It operates primarily in the financial services sector, providing a range of financial products and services to its customers. The company's core business revolves around offering secured loans against gold ornaments. Muthoot Finance has a widespread network of branches across India, serving primarily retail customers, and it also offers other financial products such as money transfer services, foreign exchange, and insurance products.

How the Company Makes Money

Muthoot Finance Ltd generates its revenue primarily through the interest income earned on the loans it provides against gold jewelry. The company offers these gold loans at competitive interest rates, and the interest charged on these loans constitutes the major portion of its revenue. Additionally, Muthoot Finance earns money through service charges and processing fees associated with its loan products. The company's extensive branch network enhances its ability to reach a large customer base, thereby increasing its revenue potential. While gold loans form the bulk of its revenue, other financial services such as money transfers, foreign exchange, and selling insurance products also contribute to its earnings, albeit to a lesser extent.

Muthoot Finance Ltd Financial Statement Overview

Summary

Muthoot Finance Ltd shows strong revenue growth and profitability in its income statement. The balance sheet reflects high leverage, typical for the industry, but requires careful management. Cash flow issues, particularly negative free cash flow, indicate liquidity concerns.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	203.24B	151.63B	77.10B	79.61B	74.52B
Gross Profit	129.12B	97.33B	77.10B	75.72B	71.33B
EBITDA	73.82B	115.58B	0.00	0.00	0.00
Net Income	53.33B	43.24B	36.12B	40.17B	38.04B
Balance Sheet
Total Assets	1.33T	964.69B	801.49B	763.16B	686.41B
Cash, Cash Equivalents and Short-Term Investments	83.46B	60.37B	77.70B	100.36B	77.78B
Total Debt	988.05B	678.72B	554.72B	543.62B	501.81B
Total Liabilities	1.03T	707.15B	579.96B	571.79B	528.82B
Stockholders Equity	293.67B	251.07B	216.66B	187.86B	155.75B
Cash Flow
Free Cash Flow	-265.93B	-139.76B	-29.45B	-16.94B	-79.06B
Operating Cash Flow	-263.76B	-137.54B	-28.04B	-15.96B	-78.14B
Investing Cash Flow	-13.76B	453.59M	1.81B	4.22B	395.81M
Financing Cash Flow	298.93B	119.58B	3.95B	34.45B	97.12B

Muthoot Finance Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2757.55
• 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 2757.55 is above the 20-day moving average (MA) of 2635.03, above the 50-day MA of 2620.85, and above the 200-day MA of 2238.69, indicating a bullish trend. The MACD of 3.92 indicates Positive momentum. The RSI at 63.70 is Neutral, neither overbought nor oversold. The STOCH value of 39.95 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
MUTHOOTFIN	73 Outperform	₹1.11T	17.99		1.03%	38.22%	37.80%
Sector *	68 Neutral	$17.53B	11.77	10.43%	3.83%	9.84%	1.31%
IDBI	65 Neutral	₹938.79B	11.86		2.41%	16.28%	25.78%
CHOLAFIN	64 Neutral	₹1.23T	27.54		0.14%	31.00%	21.07%
SHRIRAMFIN	62 Neutral	₹1.16T	11.98		2.09%	20.27%	25.95%
LICHSGFIN	46 Neutral	₹312.90B	5.69		1.58%	4.57%	15.87%