Muthoot Microfin Ltd (MUTHOOTMF) AI Stock Analysis

• Market Cap: ₹32.97B
• Dividend Yield: N/A
• Average Volume (3M): 30.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -10.17%
• EPS Growth: -181.71%
• Country: IN
• Employees: 6,204
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.79
• Shares Outstanding: 170,492,170
• 10 Day Avg. Volume: 83,998
• 30 Day Avg. Volume: 30,940
• PEG Ratio: 0.07
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 1.61
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1,052.63
• Revenue Forecast (FY): ₹1.42T

• Rating: 51 Neutral
• Price Target: ₹193.00 ▼(-0.21% Downside)

Muthoot Microfin Ltd's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, high leverage, and cash flow challenges. While technical analysis indicates strong bullish momentum, overbought conditions could pose risks. The valuation is unattractive due to negative earnings and lack of dividends.

Positive Factors

Market Position

Being a leading player in the microfinance sector in India provides Muthoot Microfin with a strong market position, allowing it to leverage its extensive network and brand recognition to maintain and potentially grow its customer base.

Business Model Strength

The focus on underserved segments offers Muthoot Microfin a unique market niche, fostering customer loyalty and social impact, which can drive sustainable growth and enhance its reputation and market penetration.

Operational Efficiency

Positive EBIT and EBITDA margins indicate that despite revenue challenges, Muthoot Microfin maintains operational efficiency, which can help stabilize and potentially improve profitability over time.

Negative Factors

Revenue Volatility

Significant revenue volatility poses a challenge for Muthoot Microfin, impacting its ability to predict future earnings and potentially affecting strategic planning and investment decisions.

High Leverage

High leverage increases financial risk, potentially limiting Muthoot Microfin's ability to invest in growth opportunities and making it vulnerable to interest rate fluctuations and economic downturns.

Cash Flow Challenges

Significant cash flow challenges can hinder Muthoot Microfin's ability to fund operations and growth initiatives, impacting long-term sustainability and financial health.

Muthoot Microfin Ltd Business Overview & Revenue Model

Company Description

Muthoot Microfin Limited, a non-deposit taking non-banking financial company, provides micro loans to women entrepreneurs in rural regions of India. The company offers income generating, Pragathi, and individual loans; mobile phones, solar lighting product, and household appliances product loans; sanitation improvement loans; gold loans; and Muthoot Small & Growing Business loans. It also provides value-added services, including wellness combo and property insurance. The company was formerly known as Panchratna Securities Limited and changed its name to Muthoot Microfin Limited in October 2012. Muthoot Microfin Limited was incorporated in 1992 and is based in Kochi, India. Muthoot Microfin Limited operates as a subsidiary of Muthoot Fincorp Limited.

How the Company Makes Money

Muthoot Microfin Ltd generates revenue primarily through interest income from the micro-loans it provides to its customers. The company charges interest on the loans, which is typically higher than traditional banking rates due to the higher risk associated with lending to low-income individuals. Additionally, MUTHOOTMF may earn income from processing fees and other service charges related to loan disbursement and management. The company also benefits from partnerships with non-governmental organizations (NGOs) and government programs that promote financial inclusion, which can provide additional funding or support. The scale of its operations, with a wide network of branches, allows Muthoot Microfin to serve a large customer base, further enhancing its revenue potential.

Muthoot Microfin Ltd Financial Statement Overview

Summary

Muthoot Microfin Ltd faces significant financial challenges across all verticals. The income statement shows declining revenues and profitability, the balance sheet reflects high leverage and negative returns, and the cash flow statement indicates cash management issues. The company needs to address these areas to improve financial health and stability.

Income Statement

Muthoot Microfin Ltd has experienced significant revenue volatility, with a sharp decline in revenue growth rate of -76.66% in the most recent year. The company has a negative net profit margin of -37.59%, indicating substantial losses. However, the EBIT and EBITDA margins are positive, suggesting some operational efficiency. The overall income statement reflects challenges in maintaining profitability and revenue stability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.01, indicating significant leverage, which poses financial risk. Return on equity is negative at -8.45%, reflecting poor profitability for shareholders. The equity ratio is moderate, suggesting a balanced asset structure. Overall, the balance sheet highlights financial risk due to high leverage and negative returns.

Cash Flow

Cash flow analysis reveals negative free cash flow growth of -412.54%, indicating cash flow challenges. The operating cash flow to net income ratio is low at 0.29, suggesting limited cash generation from operations. The free cash flow to net income ratio is close to 1, showing some alignment between cash flow and accounting profits. Overall, the cash flow statement indicates significant cash flow management issues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	36.94B	24.44B	12.06B	14.32B	3.82B	6.11B
Gross Profit	28.70B	23.71B	12.16B	6.57B	3.82B	2.53B
EBITDA	3.41B	6.83B	6.33B	7.89B	4.28B	3.30B
Net Income	-1.05B	-2.23B	4.50B	1.64B	473.98M	70.54M
Balance Sheet
Total Assets	108.57B	108.57B	115.90B	85.29B	55.91B	41.84B
Cash, Cash Equivalents and Short-Term Investments	11.44B	11.44B	9.58B	9.20B	8.93B	6.28B
Total Debt	81.01B	81.01B	85.24B	66.23B	40.88B	30.94B
Total Liabilities	82.25B	82.25B	87.86B	69.03B	42.55B	32.94B
Stockholders Equity	26.32B	26.32B	28.04B	16.26B	13.37B	8.90B
Cash Flow
Free Cash Flow	13.61B	13.61B	-21.53B	-23.61B	-10.95B	-7.12B
Operating Cash Flow	13.82B	13.82B	-21.25B	-23.33B	-10.84B	-7.04B
Investing Cash Flow	-1.28B	-1.28B	-2.25B	-1.80B	-738.03M	-379.51M
Financing Cash Flow	-14.85B	-14.85B	25.49B	25.67B	13.44B	796.90M

Muthoot Microfin Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 193.40
• 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:MUTHOOTMF, the sentiment is Positive. The current price of 193.4 is above the 20-day moving average (MA) of 171.80, above the 50-day MA of 168.44, and above the 200-day MA of 150.60, indicating a bullish trend. The MACD of 4.97 indicates Negative momentum. The RSI at 76.75 is Negative, neither overbought nor oversold. The STOCH value of 86.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MUTHOOTMF.

Muthoot Microfin Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UGROCAP	53 Neutral	₹20.56B	11.39	―	―	33.99%	11.65%
MUTHOOTMF	51 Neutral	₹32.97B	―	―	―	-10.17%	-181.71%
SPANDANA	48 Neutral	₹21.54B	-1.23	―	―	-45.13%	-1646.01%
ESAFSFB	45 Neutral	₹13.47B	―	―	2.63%	-8.71%	-2192.08%
UTKARSHBNK	45 Neutral	₹29.45B	―	―	2.57%	2.35%	-261.81%

Muthoot Microfin Ltd Corporate Events

Muthoot Microfin Ltd Releases Q2 Financial Results

Muthoot Microfin Ltd has released its investor presentation for the quarter ending September 30, 2025, detailing unaudited financial results. This disclosure, in line with regulatory requirements, offers insights into the company’s financial health and operational performance, potentially impacting its market positioning and stakeholder confidence.

Muthoot Microfin Faces Increased Trading Volume, Exchange Seeks Clarity

Muthoot Microfin Limited has experienced a significant increase in trading volume, prompting the Exchange to seek further information from the company to ensure investors are well-informed and protected. The company’s response is still pending, leaving stakeholders and the market awaiting further clarification on the implications of this development.

Muthoot Microfin Ltd to Participate in Investor Conference

Muthoot Microfin Ltd has announced its participation in the Arihant Bharat Connect Conference, titled ‘Rising Stars – September 2025,’ scheduled for September 24, 2025. This participation aligns with the company’s strategy to engage with investors and stakeholders, potentially enhancing its visibility and positioning within the financial services sector. The company has assured that no unpublished price-sensitive information will be disclosed during the conference.