Muthoot Microfin Ltd (MUTHOOTMF) AI Stock Analysis

• Market Cap: ₹25.42B
• Dividend Yield: N/A
• Average Volume (3M): 30.94K
• Price to Earnings (P/E): 19.3
• 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): 3.73
• 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): 11.5
• Revenue Forecast (FY): ₹15.72B

• Rating: 51 Neutral
• Price Target: ₹150.00 ▼(-16.94% Downside)
• Action: Reiterated Date: 11/26/25
• Date: Action: Reiterated 11/26/25

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

Focused microfinance JLG lending to low-income women

A focused JLG microfinance model targeting low-income women creates durable customer stickiness, social collateral benefits and predictable repayment cycles. This niche underwriting and mission-driven demand supports stable loan origination and long-term portfolio depth versus generalist lenders.

Branch-led field network distribution

A branch-led field network provides durable origination and collections capability, enabling close customer relationships and local credit assessment. This distribution model supports repeat lending, tighter credit monitoring and scalability of operations across geographies over multiple reporting periods.

Positive EBIT and EBITDA margins

Positive underlying EBIT and EBITDA margins indicate the core business can generate operating profit before financing costs. That operational efficiency suggests potential to restore net profitability if revenue stabilizes or funding costs decline, supporting medium-term resilience in cash generation.

Negative Factors

High leverage on balance sheet

A debt-to-equity ratio around 3x indicates substantial leverage that increases refinancing and interest-rate risk for a microfinance lender. High leverage limits financial flexibility, amplifies earnings volatility from credit losses or funding cost rises, and constrains capital for growth.

Weak operating cash generation

Severely negative free cash flow growth and a low operating-cash-to-net-income ratio show the company struggles to convert profits into usable cash. Persistent weak cash generation impairs debt servicing, limits reinvestment in branches and increases reliance on external funding over the medium term.

Declining revenue and negative net margin

A very steep revenue drop and large negative net margin reflect structural pressure on scale and profitability. Losses erode shareholder equity and capital buffers, making it harder to rebuild loan books or absorb credit shocks without raising costly capital or cutting lending activity.

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 makes money primarily by earning interest income and related fees from its microfinance loan portfolio. Its main revenue stream is interest charged on small-ticket, typically unsecured loans extended to customers (often organized in joint liability groups), with repayments collected on a regular schedule; interest accrues over the life of these loans and is recognized as lending income. The company may also earn fee-based income linked to loan origination and servicing (e.g., processing or other borrower-related charges) where permitted. On the cost side, it funds lending through borrowings (e.g., bank loans, refinancing lines, or market instruments) and uses equity capital; the spread between interest earned on loans and interest paid on borrowings (net interest income) is a key driver of profitability. Additional contributors to earnings can include cross-sell or distribution-related income from ancillary financial products (such as insurance) if offered through permitted arrangements; if such specific product partnerships or the size of these streams are required, return null because they are not provided here. Credit performance (delinquencies and write-offs), operating efficiency of the branch/field model, and access to funding at competitive rates materially influence net earnings.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	29.28B	24.44B	12.06B	14.32B	3.82B	6.11B
Gross Profit	28.58B	23.71B	12.16B	6.57B	3.82B	2.53B
EBITDA	-731.26M	6.83B	6.33B	7.89B	4.28B	3.30B
Net Income	-2.44B	-2.23B	4.50B	1.64B	473.98M	70.54M
Balance Sheet
Total Assets	114.93B	108.57B	115.90B	85.29B	55.91B	41.84B
Cash, Cash Equivalents and Short-Term Investments	0.00	11.44B	9.58B	9.20B	8.93B	6.28B
Total Debt	84.87B	81.01B	85.24B	66.23B	40.88B	30.94B
Total Liabilities	87.91B	82.25B	87.86B	69.03B	42.55B	32.94B
Stockholders Equity	27.02B	26.32B	28.04B	16.26B	13.37B	8.90B
Cash Flow
Free Cash Flow	13.59B	13.61B	-21.53B	-23.61B	-10.95B	-7.12B
Operating Cash Flow	13.76B	13.82B	-21.25B	-23.33B	-10.84B	-7.04B
Investing Cash Flow	-1.54B	-1.28B	-2.25B	-1.80B	-738.03M	-379.51M
Financing Cash Flow	-9.09B	-14.85B	25.49B	25.67B	13.44B	796.90M

Muthoot Microfin Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 180.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 180.6 is above the 20-day moving average (MA) of 158.78, above the 50-day MA of 173.24, and above the 200-day MA of 165.77, indicating a bearish trend. The MACD of -7.90 indicates Positive momentum. The RSI at 35.99 is Neutral, neither overbought nor oversold. The STOCH value of 37.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
ESAFSFB	52 Neutral	₹11.71B	48.24	―	2.64%	-8.71%	-2192.08%
MUTHOOTMF	51 Neutral	₹25.42B	19.28	―	―	-10.17%	-181.71%
SURYODAY	51 Neutral	₹13.34B	10.24	―	―	―	―
SPANDANA	48 Neutral	₹17.51B	-5.67	―	―	-45.13%	-1646.01%
UGROCAP	44 Neutral	₹12.49B	13.46	―	―	33.99%	11.65%
UTKARSHBNK	41 Neutral	₹20.07B	-1.76	―	2.82%	2.35%	-261.81%

Muthoot Microfin Ltd Corporate Events

Muthoot Microfin Publishes Unaudited Q3 and Nine-Month Results in Newspapers

Muthoot Microfin Ltd has notified the exchanges that it has published newspaper advertisements detailing its unaudited financial results for the quarter and nine months ended December 31, 2025, in compliance with SEBI’s Listing Obligations and Disclosure Requirements Regulations. The disclosure underscores the company’s adherence to regulatory transparency and continuous financial reporting, providing investors and other stakeholders with timely access to its interim performance data through public domain publications.

The company’s communication to BSE and NSE formalizes that these unaudited results have been made publicly available via newspapers, aligning with mandated norms for listed debt and equity securities. This step helps maintain market confidence and ensures that information on Muthoot Microfin’s financial trajectory is broadly disseminated, supporting informed decision-making by shareholders, bondholders and prospective investors.

Muthoot Microfin Clears ₹150-Crore NCD Issue, Cancels Earlier ₹150-Crore Tranche

Muthoot Microfin Limited’s Debenture Issue and Allotment Committee has approved the private placement of two sets of secured, rated, listed, redeemable non-convertible debentures (NCDs), comprising 5,000 NCDs with a face value of ₹1 lakh each aggregating ₹50 crore, and an additional 10,000 taxable NCDs of ₹1 lakh each aggregating ₹100 crore, split equally into two series of ₹50 crore each. At the same time, the company has cancelled the previously proposed second tranche of its November 27, 2025 NCD issuance, which was to consist of 15,000 taxable NCDs aggregating up to ₹150 crore, signalling a recalibration of its debt-raising plan that may affect the timing and structure of its funding mix but maintains its overall use of listed debentures as a core financing tool.

Muthoot Microfin Reaffirms SEBI Compliance on Governance and Share Transfer Systems

Muthoot Microfin Limited has confirmed that it remains in compliance with key Securities and Exchange Board of India (SEBI) listing obligations for the quarter ended 31 December 2025, including the continued appointment of a qualified company secretary as compliance officer. The company also reaffirmed that KFin Technologies Limited continues to serve as its registrar and share transfer agent, underscoring stable governance and regulatory adherence that support its standing in public markets and provide assurance to investors and other stakeholders about the robustness of its compliance framework.