Muthoot Microfin Ltd (MUTHOOTMF) AI Stock Analysis

• Market Cap: ₹28.22B
• Dividend Yield: N/A
• Average Volume (3M): 15.43K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 1.12
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 6,204
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.36
• Shares Outstanding: 170,492,170
• 10 Day Avg. Volume: 14,470
• 30 Day Avg. Volume: 15,426
• 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: ₹159.00
• Price Target Upside: -3.93% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ₹159.00 ▼(-3.93% Downside)

Muthoot Microfin Ltd's overall stock score reflects significant financial challenges, with declining revenues and high leverage being the most critical factors. The technical analysis provides a neutral outlook, while the valuation suggests potential undervaluation. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Market Position

As a leading microfinance institution, Muthoot Microfin Ltd benefits from a strong market position, enabling it to leverage its brand and extensive network to reach underserved populations, fostering long-term growth and stability.

Business Model Strength

The focus on underserved segments provides a niche market advantage, allowing Muthoot Microfin to capitalize on unmet demand and contribute to financial inclusion, which is a durable growth driver in emerging markets.

Operational Efficiency

Positive EBIT and EBITDA margins indicate operational efficiency, suggesting that despite revenue challenges, the company can manage costs effectively, which is crucial for long-term sustainability.

Negative Factors

Revenue Decline

A significant decline in revenue growth poses a challenge to the company's ability to sustain operations and invest in future growth, impacting its long-term financial health.

High Leverage

High leverage increases financial risk, limiting the company's flexibility to navigate economic downturns or invest in growth opportunities, potentially affecting long-term viability.

Cash Flow Challenges

Significant cash flow challenges hinder the company's ability to fund operations and growth initiatives internally, increasing reliance on external financing and impacting financial stability.

Muthoot Microfin Ltd Business Overview & Revenue Model

Company Description

Muthoot Microfin Ltd (MUTHOOTMF) is a leading microfinance institution in India that focuses on providing financial services to underserved segments of the population, particularly women and low-income households. The company operates primarily in the microfinance sector, offering a range of products including micro-loans, group loans, and financial literacy programs. MUTHOOTMF aims to empower its clients by enabling access to credit for income-generating activities, thereby fostering economic development and financial inclusion.

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. 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. These factors collectively highlight the company's need for financial restructuring.

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 2023	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	36.94B	24.44B	12.06B	13.09B	6.11B	7.23B
Gross Profit	28.70B	23.71B	7.07B	4.10B	1.44B	1.63B
EBITDA	3.41B	6.83B	6.33B	4.29B	1.00B	1.02B
Net Income	-1.05B	-2.23B	4.50B	1.64B	70.54M	473.98M
Balance Sheet
Total Assets	108.57B	108.57B	115.90B	85.29B	41.84B	55.91B
Cash, Cash Equivalents and Short-Term Investments	11.44B	11.44B	13.41B	9.20B	6.28B	8.93B
Total Debt	81.01B	81.01B	85.24B	66.23B	30.94B	40.88B
Total Liabilities	82.25B	82.25B	87.86B	69.03B	32.94B	42.55B
Stockholders Equity	26.32B	26.32B	28.04B	16.26B	8.90B	13.37B
Cash Flow
Free Cash Flow	13.61B	13.61B	-21.53B	-23.61B	-7.12B	-10.95B
Operating Cash Flow	13.82B	13.82B	-21.25B	-23.33B	-7.04B	-10.84B
Investing Cash Flow	-1.28B	-1.28B	-2.25B	-1.80B	-379.51M	-738.03M
Financing Cash Flow	-14.85B	-14.85B	25.49B	25.67B	796.90M	13.44B

Muthoot Microfin Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 165.50
• 50DMA: Positive
• 100DMA: Positive
• 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:MUTHOOTMF, the sentiment is Neutral. The current price of 165.5 is above the 20-day moving average (MA) of 161.32, above the 50-day MA of 161.12, and above the 200-day MA of 152.98, indicating a bullish trend. The MACD of 2.45 indicates Negative momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 41.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	9.93%	3.81%	9.73%	1.22%
MUTHOOTMF	54 Neutral	₹28.22B	5.23		―	―	―
UGROCAP	53 Neutral	₹20.31B	11.25		―	34.09%	17.49%
SPANDANA	52 Neutral	₹23.08B	26.37		―	-26.77%	-431.45%
ESAFSFB	41 Neutral	₹15.10B	66.17		2.39%	-4.34%	-285.53%
SURYODAY	―	₹13.50B	16.83		―	―	―
UTKARSHBNK	45 Neutral	₹23.68B	101.76		2.33%	12.40%	-166.78%