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Muthoot Finance Ltd (IN:MUTHOOTFIN)
:MUTHOOTFIN
India Market
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Muthoot Finance Ltd (MUTHOOTFIN) AI Stock Analysis

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IN:MUTHOOTFIN

Muthoot Finance Ltd

(MUTHOOTFIN)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
₹3,075.00
▲(1.98% 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 (MUTHOOTFIN) vs. iShares MSCI India ETF (INDA)

Muthoot Finance Ltd Business Overview & Revenue Model

Company DescriptionMuthoot 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 MoneyMuthoot 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, with a robust gross profit margin. However, high leverage and negative free cash flow indicate potential liquidity risks that need addressing.
Income Statement
80
Positive
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
75
Positive
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
65
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue202.65B203.24B151.63B77.10B79.61B74.52B
Gross Profit129.12B129.12B97.33B77.10B75.72B71.33B
EBITDA40.13B73.82B115.58B0.000.000.00
Net Income53.02B53.33B43.24B36.12B40.17B38.04B
Balance Sheet
Total Assets1.33T1.33T964.69B801.49B763.16B686.41B
Cash, Cash Equivalents and Short-Term Investments83.46B83.46B60.37B77.70B100.36B77.78B
Total Debt988.05B988.05B678.72B554.72B543.62B501.81B
Total Liabilities1.03T1.03T707.15B579.96B571.79B528.82B
Stockholders Equity293.67B293.67B251.07B216.66B187.86B155.75B
Cash Flow
Free Cash Flow0.00-265.93B-139.76B-29.45B-16.94B-79.06B
Operating Cash Flow0.00-263.76B-137.54B-28.04B-15.96B-78.14B
Investing Cash Flow0.00-13.76B453.59M1.81B4.22B395.81M
Financing Cash Flow0.00298.93B119.58B3.95B34.45B97.12B

Muthoot Finance Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3015.20
Price Trends
50DMA
2759.66
Positive
100DMA
2590.09
Positive
200DMA
2379.67
Positive
Market Momentum
MACD
89.53
Negative
RSI
62.83
Neutral
STOCH
74.54
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 3015.2 is above the 20-day moving average (MA) of 2921.15, above the 50-day MA of 2759.66, and above the 200-day MA of 2379.67, indicating a bullish trend. The MACD of 89.53 indicates Negative momentum. The RSI at 62.83 is Neutral, neither overbought nor oversold. The STOCH value of 74.54 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
₹1.21T19.670.86%38.22%37.80%
72
Outperform
₹963.20B12.1712.38%2.34%16.28%25.78%
66
Neutral
₹1.14T11.7516.92%2.13%20.27%25.95%
64
Neutral
₹1.32T29.6318.01%0.13%31.00%21.07%
59
Neutral
₹310.87B5.6514.97%1.77%4.57%15.87%
56
Neutral
₹234.46B29.319.78%1.08%4.83%-64.41%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:MUTHOOTFIN
Muthoot Finance Ltd
3,015.20
1,008.95
50.29%
IN:CHOLAFIN
Cholamandalam Investment and Finance Co. Ltd.
1,569.40
-37.26
-2.32%
IN:IDBI
IDBI Bank Limited
89.58
4.17
4.88%
IN:LICHSGFIN
LIC Housing Finance Ltd
565.15
-85.79
-13.18%
IN:MANAPPURAM
Manappuram Finance Limited
277.00
78.78
39.74%
IN:SHRIRAMFIN
Shriram Finance Limited
605.75
-98.22
-13.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 15, 2025