Muthoot Microfin Ltd
Ticker: MUTHOOTMF
Decent
66/100
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Investing Reference
Price
166.37
Market Cap
2788.32
Debt/Equity
3.0777
ROE %
-8.186
PB
1.0593
Promoter %
55.466
Pledge %
0.000
1Y Rev Growth %
13.708
5Y Rev Growth %
24.229
NP Margin %
-8.678
NP Margin 5Y Avg %
5.845
Trading Reference
1M Return %
0.701
6M Return %
19.484
1Y Return %
-24.119
% Away 52W High
34.880
% Away 52W Low
39.514
Daily Volume
129781
Investment Verdict
Hold
Score 66/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 33/100 · 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.
AI Probability Statement
Probability Statement
Muthoot Microfin Ltd is currently trading near a key support level, with recent volume indicating accumulation. If it breaks above the resistance level established at the recent highs, there is potential for a significant upside. However, if it falls below the support, downside risk increases.
Upside Probability: 25% | Downside Probability: 15%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Muthoot Microfin Ltd is a leading microfinance institution in India, dedicated to empowering low-income individuals and small businesses through accessible financial services. With a focus on women entrepreneurs and rural communities, Muthoot Microfin plays a crucial role in fostering economic growth and financial inclusion. Its commitment to responsible lending and customer-centric solutions makes it a trusted partner for those seeking to improve their livelihoods.
- Empowers low-income individuals and small businesses
- Focus on women entrepreneurs and rural communities
- Promotes financial inclusion and economic growth
- Responsible lending practices
- Customer-centric financial solutions
Investment Thesis
Muthoot Microfin Ltd stands out due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. As the microfinance sector expands, Muthoot is well-positioned to capitalize on emerging opportunities, making it a compelling investment choice for retail investors.
- Strong promoter group with a proven track record in financial services.
- Significant growth potential in digital offerings, enhancing customer reach.
- Valuation metrics indicate Muthoot is undervalued relative to industry peers.
- Robust demand for microfinance solutions in underserved markets.
- Commitment to social impact aligns with investor interests.
Opportunity vs Risk
Opportunities
- Growing microfinance sector in India
- Rising demand for small loans
- Strong customer base in rural areas
- Government support for microfinance
- Potential for digital expansion
Risks ⚠️
- Regulatory changes impacting operations
- High competition in microfinance
- Economic downturn affecting repayments
- Rising interest rates
- Credit risk from borrowers
Peer Perspective
Muthoot Microfin Ltd trades at a discount to peers like Spandana Sphoorty and Ujjivan Financial, reflecting concerns over margin stability. A consistent improvement in asset quality could trigger a rerating.
Future Outlook
Muthoot Microfin Ltd is well-positioned for growth in the microfinance sector, provided it maintains strong execution and cost control measures. Continued focus on customer acquisition and service quality will be key to its success.
AI FAQs for Retail Users
- Q: What does Muthoot Microfin Ltd do?A: Muthoot Microfin Ltd provides microfinance services to underserved communities in India.
- Q: Is Muthoot Microfin Ltd a profitable company?A: The company has reported profits in recent years, but past performance does not guarantee future results.
- Q: What are the risks of investing in Muthoot Microfin Ltd?A: Risks include regulatory changes, market competition, and economic conditions affecting borrowers' repayment ability.
- Q: How can I invest in Muthoot Microfin Ltd?A: You can invest through a stock broker or an online trading platform.
- Q: What is the dividend policy of Muthoot Microfin Ltd?A: The company may declare dividends based on its profitability and board decisions.
📊 Stock Investment Checklist (100 Points)
Muthoot Microfin Ltd • Updated: 2025-09-17 03:59:59
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10BusinessHighMicrofinance sector is growing 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 higher compared to peers.
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6BalanceGoodModerate debt levels, liquidity is manageable.
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7GovernanceHighPromoter holding is strong, but some pledging exists.
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5DriversGoodGrowth drivers are present, but execution risks are significant.
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5TechnicalsGoodMarket sentiment is mixed, with low liquidity.
Final Score & Verdict
Score 66 / 100
• Decent
Muthoot Microfin Ltd shows potential for growth but faces several risks that could impact its performance.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 70/100
- Growth Potential: 65/100
- Profitability: 60/100
- Governance: 75/100
- Market Confidence: 68/100