Muthoot Finance Ltd (MUTHOOTFIN) AI Stock Analysis

• Market Cap: ₹1.28T
• Dividend Yield: 0.7%
• Average Volume (3M): 14.55K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.83
• 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): 4.62
• 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: ₹3,646.67
• Price Target Upside: -1.31% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹3,667.00 ▼(-0.76% 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.

Muthoot Finance Ltd Business Overview & Revenue Model

Company Description

Muthoot Finance Ltd (MUTHOOTFIN) is a leading non-banking financial company (NBFC) in India, primarily engaged in providing gold loans. Established in 1887, the company has expanded its operations across various sectors, including microfinance, money transfer services, and insurance. Muthoot Finance is known for its extensive network of branches and its commitment to offering quick and accessible financial solutions, particularly to underserved segments of the population.

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: 3695.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3695.1 is above the 20-day moving average (MA) of 3311.55, above the 50-day MA of 3170.49, and above the 200-day MA of 2577.19, indicating a bullish trend. The MACD of 131.93 indicates Negative momentum. The RSI at 74.63 is Negative, neither overbought nor oversold. The STOCH value of 94.45 is Negative, 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	₹1.10T	11.84	―	2.05%	11.31%	37.17%
MUTHOOTFIN	74 Outperform	₹1.28T	20.81	―	0.70%	41.32%	56.12%
CHOLAFIN	73 Outperform	₹1.48T	33.14	―	0.12%	27.30%	20.42%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHRIRAMFIN	67 Neutral	₹1.50T	15.18	―	1.26%	21.24%	22.61%
LICHSGFIN	55 Neutral	₹315.65B	5.72	―	1.76%	4.79%	13.08%
MANAPPURAM	49 Neutral	₹239.12B	53.24	―	0.89%	-3.68%	-80.12%

Muthoot Finance Ltd Corporate Events

Muthoot Finance Expands Global Medium Term Note Programme with US$600M Bond Issuance

Muthoot Finance Ltd has announced an update regarding its US $4 billion Global Medium Term Note Programme, specifically the issuance of US$600 million Senior Secured Notes due in March 2030. This strategic financial move is aimed at enhancing the company’s lending capabilities and other activities, aligning with regulatory approvals and guidelines. The issuance is expected to strengthen Muthoot Finance’s market position by providing additional liquidity, potentially impacting stakeholders by increasing the company’s financial flexibility and operational capacity.

Muthoot Finance Expands Board Capacity with AOA Amendment

Muthoot Finance Ltd has announced an amendment to its Articles of Association, approved during the 28th Annual General Meeting on August 30, 2025. The alteration involves increasing the maximum number of directors on the company’s board from fifteen to sixteen, potentially enhancing its governance structure and strategic decision-making capabilities.

Muthoot Finance Prices USD 600 Million Fixed Rate Notes for Lending Expansion

Muthoot Finance Limited has announced the pricing of USD 600 million 6.375% Fixed Rate Notes due 2030 under its USD 2 billion Global Medium Term Note Programme. The proceeds from these notes will be utilized for onward lending activities in compliance with the Foreign Exchange Management Regulations and guidelines issued by the Reserve Bank of India. This strategic move is expected to enhance Muthoot Finance’s lending capacity and strengthen its market position in the financial services sector.

Muthoot Finance Announces New USD Bond Mandate

Muthoot Finance Ltd has announced a new mandate for a USD-denominated senior secured bond offering under its Global Medium Term Note Programme. The proceeds from this bond issuance will be utilized for onward lending and other activities in compliance with the ECB Guidelines, reflecting the company’s strategic move to bolster its financial resources and enhance its lending capabilities.

Muthoot Finance’s Credit Rating Upgraded by Fitch

Fitch Ratings has upgraded Muthoot Finance Limited’s issuer credit rating from ‘BB’ to ‘BB+’ with a stable outlook. This revision reflects positively on the company’s financial stability and could enhance its reputation in the financial markets, potentially leading to improved stakeholder confidence and better access to capital.