Muthoot Finance Ltd
Ticker: MUTHOOTFIN
Decent
68/100
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Investing Reference
Price
3260.30
Market Cap
130890.77
Debt/Equity
3.3135
ROE %
19.132
PB
4.3640
Promoter %
73.347
Pledge %
0.000
1Y Rev Growth %
34.042
5Y Rev Growth %
15.927
NP Margin %
26.239
NP Margin 5Y Avg %
30.125
Trading Reference
1M Return %
9.503
6M Return %
58.961
1Y Return %
66.601
% Away 52W High
0.758
% Away 52W Low
85.661
Daily Volume
529423
Investment Verdict
Hold
Score 68/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Momentum
Score 87/100 · Position size: 20%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Muthoot Finance Ltd is currently trading near its support level, with the 50-day EMA indicating a potential upward trend. If it breaks above the resistance level, there is a favorable probability for price appreciation. However, if it fails to hold the support, a downside risk is present.
Upside Probability: 15% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Muthoot Finance Ltd is a leading non-banking financial company in India, primarily engaged in gold financing. Catering to individuals and businesses in need of quick and accessible financial solutions, it plays a crucial role in empowering customers with liquidity against their gold assets. With a strong reputation and extensive network, Muthoot Finance stands out for its customer-centric approach and transparent practices. This makes it a trusted partner for millions seeking financial stability and growth.
- Leading gold financing company in India
- Serves individuals and businesses
- Quick and accessible financial solutions
- Strong reputation and extensive network
- Customer-centric approach and transparency
- Empowers customers with liquidity against gold
Investment Thesis
Muthoot Finance Ltd stands out in the financial services sector due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. These factors position the company for sustained growth and profitability, making it a compelling investment opportunity for retail investors.
- Strong promoter group with a long-standing reputation in the industry.
- Significant growth potential in digital services, enhancing customer reach and engagement.
- Attractive valuation metrics compared to industry peers, presenting a solid entry point.
- Established brand recognition and trust among customers, driving loyalty.
- Consistent financial performance with a focus on sustainable growth strategies.
Opportunity vs Risk
Opportunities
- Strong brand recognition in gold loans
- Expanding digital services for customers
- Growing demand for personal loans
- Diversification into new financial products
Risks ⚠️
- High dependence on gold prices
- Regulatory changes affecting lending
- Increased competition in finance sector
- Economic downturn impacting loan repayments
Peer Perspective
Muthoot Finance Ltd trades at a discount to peers like Manappuram Finance and Bajaj Finance, reflecting concerns over margin stability. A consistent improvement in asset quality and growth acceleration could trigger a rerating.
Future Outlook
Muthoot Finance Ltd is well-positioned for growth, driven by strong demand for gold loans; however, successful execution of cost control measures will be crucial to sustain profitability in a competitive market.
AI FAQs for Retail Users
- Q: What does Muthoot Finance Ltd do?A: Muthoot Finance Ltd primarily offers gold loans and financial services in India.
- Q: Is Muthoot Finance a good investment?A: Investment decisions should consider your financial goals and risk tolerance. Research is essential.
- Q: What are the risks of investing in Muthoot Finance?A: Market fluctuations, regulatory changes, and economic conditions can impact Muthoot Finance's performance.
- Q: How can I buy shares of Muthoot Finance?A: You can purchase shares through a stockbroker or an online trading platform.
- Q: What is the dividend policy of Muthoot Finance?A: Muthoot Finance typically declares dividends, but past performance does not guarantee future payouts.
📊 Stock Investment Checklist (100 Points)
Muthoot Finance Ltd • Updated: 2025-09-17 03:59:51
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10BusinessHighThe sector is stable with a clear business model, but faces regulatory challenges.
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10GrowthHighConsistent revenue growth but profit margins are under pressure.
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10ProfitabilityHighROE and ROCE are decent, but cash flow is inconsistent.
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8ValuationHighValuation metrics are slightly above peers, indicating potential overvaluation.
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7BalanceHighModerate debt levels with reasonable liquidity.
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6GovernanceGoodPromoter holding is strong, but there are concerns about pledging.
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5DriversGoodGrowth drivers exist, but execution risks are significant.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.
Final Score & Verdict
Score 68 / 100
• Decent
Muthoot Finance Ltd shows decent fundamentals but faces challenges in profitability and valuation. Caution is advised.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 80/100
- Governance: 65/100
- Market Confidence: 72/100