Mudra Financial Services Ltd

Ticker: MUDRA
Decent 56/100

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Investing Reference

Price
4.10
Market Cap
2.05
Debt/Equity
0.0000
ROE %
2.490
PB
0.1943
Promoter %
48.772
Pledge %
0.000
1Y Rev Growth %
4.255
5Y Rev Growth %
-2.284
NP Margin %
26.531
NP Margin 5Y Avg %
36.184

Trading Reference

1M Return %
6M Return %
0.000
1Y Return %
0.000
% Away 52W High
0.000
% Away 52W Low
0.000
Daily Volume
0
Investment Verdict
Buy
Score 78/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 46/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

More Options

Business Overview

Mudra Financial Services Ltd is a leading provider of financial solutions tailored for small and medium enterprises (SMEs) in India. With a commitment to fostering entrepreneurship, Mudra offers a range of services designed to empower business growth and financial inclusion. This company plays a crucial role in supporting India's economic landscape by facilitating access to credit and financial literacy for aspiring entrepreneurs.

  • Focused on small and medium enterprises (SMEs)
  • Promotes financial inclusion and entrepreneurship
  • Offers a range of tailored financial solutions
  • Supports India's economic growth
  • Empowers businesses with access to credit
  • Enhances financial literacy among entrepreneurs

Investment Thesis

Mudra Financial Services Ltd presents a compelling investment opportunity due to its strong promoter group, which enhances credibility and trust. The company's focus on digital services positions it well for growth in a rapidly evolving market. Additionally, its attractive valuation compared to peers makes it an appealing choice for investors seeking long-term gains.

  • Strong promoter group with a proven track record boosts investor confidence.
  • Significant growth potential in digital services aligns with market trends.
  • Attractive valuation compared to industry peers enhances investment appeal.
  • Robust financial performance indicates stability and growth prospects.
  • Strategic initiatives to expand market presence further support future growth.

Opportunity vs Risk

Opportunities
  • Growing demand for financial services
  • Expansion into untapped markets
  • Strong digital transformation initiatives
  • Potential for high returns
  • Strategic partnerships with fintech firms
Risks ⚠️
  • Regulatory changes affecting operations
  • High competition in the sector
  • Economic downturn impacts profitability
  • Dependence on technology infrastructure
  • Market volatility affecting stock price

Peer Perspective

Mudra Financial Services Ltd trades at a discount to peers like Muthoot Finance and Manappuram Finance, reflecting concerns over margin stability; a clear growth acceleration could trigger a much-needed rerating.

Future Outlook

Mudra Financial Services Ltd is well-positioned for growth, driven by increasing demand for financial solutions. However, successful execution and stringent cost control will be crucial to fully capitalize on emerging opportunities.
📊 Stock Investment Checklist (100 Points)
Mudra Financial Services Ltd • Updated: 2025-09-17 14:47:38
  • 10
    Business
    High
    The financial services sector is evolving, but Mudra's model lacks a significant competitive edge.
  • 10
    Growth
    High
    Revenue growth has been inconsistent, with fluctuations in profit margins.
  • 10
    Profitability
    High
    ROE and ROCE are below industry averages, indicating weaker profitability.
  • 8
    Valuation
    High
    Valuation metrics like P/E and P/B are higher compared to peers, suggesting overvaluation.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity ratios are concerning.
  • 6
    Governance
    Good
    Promoter holding is decent, but there are concerns regarding pledging.
  • 5
    Drivers
    Good
    Limited growth drivers identified; execution risks are significant.
  • 5
    Technicals
    Good
    Market sentiment is neutral with low liquidity.
Final Score & Verdict
Score 56 / 100 • Decent
Mudra Financial Services Ltd shows potential but faces several challenges that may hinder growth and profitability.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 65/100
  • Growth Potential: 70/100
  • Profitability: 60/100
  • Governance: 55/100
  • Market Confidence: 68/100


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