Muthoot Finance Ltd (MUTHOOTFIN) AI Stock Analysis

• Market Cap: ₹1.35T
• Dividend Yield: 0.68%
• Average Volume (3M): 14.55K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.81
• Revenue Growth: 41.32%
• EPS Growth: 56.12%
• Country: IN
• Employees: 28,286
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 66.16
• 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: ₹4,750.00
• Price Target Upside: 41.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 238.61
• Revenue Forecast (FY): ₹170.29B

• Rating: 66 Neutral
• Price Target: ₹3,416.00 ▲(1.68% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is primarily supported by strong financial performance (revenue growth and profitability with strong ROE), but is held back by cash flow weakness (negative free cash flow) and high leverage. Technical indicators also reflect weak near-term momentum, while valuation appears reasonable but with a low dividend yield.

Positive Factors

Revenue & Profitability

Sustained ~47% revenue growth and reported healthy net and gross margins indicate durable demand for loan products and operational efficiency. Over 2–6 months this supports predictable earnings, reinvestment capacity and resilience in core cash-generating operations.

High Return on Equity

A strong ROE signals efficient capital deployment and the ability to convert shareholder equity into profits. This underpins long-term shareholder value creation, supports internal capital formation for branch-led expansion, and cushions against cyclical revenue swings.

Secured Gold-loan Model & Branch Network

A collateralized gold-loan business reduces loss severity versus unsecured lending, while a large branch footprint supports stable origination and customer access. Together these structural advantages sustain credit performance and steady cash interest income over time.

Negative Factors

Elevated Leverage

Elevated debt-to-equity increases sensitivity to funding costs and heightens refinancing and liquidity risk. Over months, higher leverage constrains flexibility to absorb rate shocks or sudden funding stress and can amplify earnings volatility if spreads compress.

Negative Free Cash Flow

Persistent negative free cash flow despite profitability indicates weak cash conversion and reliance on external funding to sustain growth. This reduces financial headroom for investments or buffers against market shocks and can increase vulnerability to funding squeezes.

Reliance on External Borrowings

Dependence on bank and market borrowings means business growth and margins are exposed to wholesale funding availability and interest-rate cycles. Structural tightening or increased funding costs would directly compress net interest margins and slow loan origination capacity.

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 makes money mainly by lending and earning interest income on its loan portfolio, with gold loans (loans secured by customers’ gold jewellery) as its core product. The company raises funds through a mix of borrowings (such as bank funding and market instruments) and uses these funds to originate secured retail loans; its primary revenue stream is the interest charged on these loans. Additional income can include fees and charges associated with loan origination, processing, renewal/servicing, and other customer-related charges permitted under its lending terms. As an NBFC, its earnings are influenced by net interest margin (the spread between interest earned on loans and the cost of funds), loan growth and ticket sizes, asset quality and credit losses (including recoveries via repayment or collateral realization where applicable), operating efficiency of its branch-led distribution model, and regulatory or market conditions that affect funding costs and lending rates. Specific details on significant partnerships contributing to earnings are null.

Muthoot Finance Ltd Financial Statement Overview

Summary

Strong income statement with solid revenue growth and healthy profitability, and a balance sheet supported by strong ROE, but elevated leverage and negative free cash flow/weak cash conversion introduce liquidity and funding risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	246.33B	202.65B	150.86B	119.19B	122.17B	115.52B
Gross Profit	156.96B	128.53B	96.56B	77.10B	79.61B	74.52B
EBITDA	79.38B	73.82B	60.89B	50.01B	54.80B	51.99B
Net Income	73.04B	53.33B	43.24B	36.12B	40.17B	38.04B
Balance Sheet
Total Assets	1.61T	1.33T	964.69B	801.49B	763.16B	686.41B
Cash, Cash Equivalents and Short-Term Investments	81.21B	83.46B	62.72B	80.74B	100.36B	79.36B
Total Debt	1.23T	988.05B	678.72B	554.72B	543.62B	501.81B
Total Liabilities	1.27T	1.03T	707.15B	579.96B	571.79B	528.82B
Stockholders Equity	328.19B	293.67B	251.07B	216.66B	187.86B	155.75B
Cash Flow
Free Cash Flow	-201.54B	-265.93B	-139.76B	-29.45B	-16.94B	-79.06B
Operating Cash Flow	-201.01B	-263.76B	-137.54B	-28.04B	-15.96B	-78.14B
Investing Cash Flow	-25.05B	-13.76B	453.59M	1.81B	4.22B	395.81M
Financing Cash Flow	223.47B	298.93B	119.58B	3.95B	34.45B	97.12B

Muthoot Finance Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3359.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Neutral. The current price of 3359.65 is below the 20-day moving average (MA) of 3378.08, below the 50-day MA of 3660.85, and above the 200-day MA of 3180.06, indicating a neutral trend. The MACD of -110.68 indicates Negative momentum. The RSI at 45.25 is Neutral, neither overbought nor oversold. The STOCH value of 57.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹827.93B	14.17	―	2.08%	11.31%	37.17%
CHOLAFIN	73 Outperform	₹1.30T	27.83	―	0.12%	27.30%	20.42%
SHRIRAMFIN	70 Outperform	₹1.86T	18.52	―	1.08%	21.24%	22.61%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MUTHOOTFIN	66 Neutral	₹1.35T	13.64	―	0.68%	41.32%	56.12%
LICHSGFIN	55 Neutral	₹275.77B	5.31	―	1.87%	4.79%	13.08%
MANAPPURAM	49 Neutral	₹212.41B	27.09	―	0.80%	-3.68%	-80.12%

Muthoot Finance Ltd Corporate Events

Muthoot Finance Prices USD 600 Million 5.75% Notes Due 2030 Under GMTN Programme

Muthoot Finance Limited has priced USD 600 million of 5.75% fixed-rate notes due 2030 under its USD 4 billion Global Medium Term Note Programme, following approval by the Finance Committee of its Board on January 29, 2026. The funds raised will be deployed for onward lending activities in line with India’s external commercial borrowing framework and RBI regulations, reinforcing the company’s access to offshore capital and supporting its loan book growth, with the notes proposed to be listed on NSE IFSC Limited.

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.