Muthoot Finance Share Price and Investment Opportunities

Muthoot Finance is one of the largest gold loan companies in India, with a market capitalization of over ₹20,000 crores.

The company has a strong presence in the gold loan segment, with over 4,400 branches across the country.

Muthoot Finance has consistently delivered strong financial performance, with a net profit of ₹1,445 crores in FY 2020-21.

Its robust financials and growth prospects make it an attractive investment opportunity for investors.

The 52-week low for Muthoot Finance is ₹1,262, while the 52-week high is ₹2,275.

The company's stock opened at ₹2,250 and closed at ₹2,257, with a volume of 281,331.

The MACD signal is at 46.94, indicating a certain level of momentum in the market.

Here are the quarterly profit and loss figures for Muthoot Finance:

The profit after tax for the company has consistently increased over the quarters, with the highest being ₹1321 in Sep 2024.

Analyzing the share price of Muthoot Finance can be a bit overwhelming, but with the right metrics, you can make informed decisions. To start, let's look at the P/E ratio, which compares the current share price to the per share earnings of the company. This ratio can indicate if a company's stock is undervalued or overvalued.

For instance, a low P/E ratio may suggest that a company's stock is undervalued, while a high P/E ratio indicates that the stock has been overvalued. The average P/E ratio varies from sector to sector, so it's essential to compare the P/E ratio of different stocks listed on the stock watch by Muthoot Finance for BSE.

Another key metric is the price-to-book ratio, which measures the market value of the shares in question, divided by the book value of the shares. This ratio can help identify companies with high growth potential but have been undervalued. A low price-to-book ratio generally indicates that the shares are potentially undervalued.

Here are some key metrics to consider when analyzing the share price of Muthoot Finance:

The dividend yield is another essential metric, expressed as a percentage, and it represents the amount paid by a company in the form of dividends to its shareholders in relation to the current price of the stock. A higher dividend yield indicates a better chance of receiving high dividends.

Finally, the earnings per share (EPS) is a measure of the profitability of the stock. If a company has an EPS higher than the industry standard, its shares are considered to be of high value, as investors see it as a growing company and are assured that they will get good returns on their investment.

Muthoot Finance has been recognized as India's No. 1 Most Trusted Financial Services Brand for 8 years in a row since 2016, according to the Brand Trust Report 2024.

This consistent recognition is a testament to the company's strong reputation and commitment to trustworthiness. Muthoot Finance also has one of the highest credit ratings, being one of the first NBFCs to join the ‘Rs 1000 crore net profit’ club.

Here are some key statistics that highlight the company's growth and stability:

The company's growing EPS is another positive aspect, indicating a steady increase in profitability. With a collective holding of 68% company insiders at Muthoot Finance, the management has ample capital behind the venture.

Muthoot Finance is a promising stock to invest in, especially with its high insider ownership of 68%, which links company performance to the financial success of management.

The company has seen consistent growth over the years and has one of the highest credit ratings, being one of the first NBFCs to join the ‘Rs 1000 crore net profit’ club.

Muthoot Finance has a P/E Ratio of 19.3, which indicates a reasonable valuation.

Its P/B Ratio of 3.5 suggests that the stock is undervalued compared to its book value.

The Average True Range of 57.08 indicates a relatively stable stock price.

EPS of 116.53 indicates a strong earning potential.

RSI of 74.69 suggests that the stock is overbought, but still has room for growth.

MFI of 72.9 indicates a strong buying momentum.

Here are some key statistics to consider:

Muthoot Finance has an impressive operating revenue of Rs. 17,386.50 Cr. on a trailing 12-month basis.

With an annual revenue growth of 27%, the company is experiencing outstanding growth. This is a significant indicator of a healthy business.

The pre-tax margin of 40% is great, indicating that the company is efficiently managing its expenses. This is a key factor in determining a company's profitability.

A return on equity (ROE) of 17% is exceptional, showing that the company is generating strong profits from shareholder equity.

From a technical standpoint, the stock is comfortably placed above its key moving averages, around 12% and 21% from the 50DMA and 200DMA respectively.

This is a positive sign, as it indicates that the stock has room to grow before reaching its resistance levels.

The stock has recently broken out of a base in its weekly chart and is trading around 6% from the pivot point.

This breakout is a bullish sign, indicating that the stock may continue to rise in the near future.

The stock's EPS Rank of 69 is a FAIR score, indicating that the company's earnings need to improve.

However, the RS Rating of 71 is also a FAIR score, indicating that the recent price performance of the stock is decent but not outstanding.

The Buyer Demand at A+ is evident from the recent demand for the stock, showing that investors are interested in purchasing the stock.

Unfortunately, the Group Rank of 118 indicates that the company belongs to a poor industry group, Finance-Consumer Loans.

Muthoot Finance is a well-established company with a strong presence in the financial sector. It was granted an RBI license to operate as an NBFC in 2001.

The company has received several ratings and certifications from reputable institutions, including Fitch Ratings' highest rating of F1 for short-term debt of ₹20 crore in 2004. This rating was confirmed in 2006 for a short-term debt of ₹40 crore.

Muthoot Finance has experienced significant growth, with its retail loan portfolio exceeding ₹14 billion in 2007 and ₹74 billion in 2010. Its debenture portfolio also saw substantial growth, exceeding ₹1 billion in 2007 and ₹27 billion in 2010.

Here are some key milestones in the company's history:

The company has also expanded its branch network, reaching 500 locations in 2007 and 1,000 branches in 2010.

The shareholding pattern of Muthoot Finance is quite stable, with the promoter holding a consistent 73.35% stake throughout the year.

The promoter's stake has remained unchanged since June 2022, indicating a high level of control and stability in the company's ownership.

Foreign Institutional Investors (FII) have seen a decline in their stake, from 10.96% in June 2022 to 8.69% in September 2024.

Domestic Institutional Investors (DII) have seen a steady increase in their stake, from 10.48% in June 2022 to 13.3% in September 2024.

The public's stake has been steadily decreasing, from 5.2% in June 2022 to 3.52% in September 2024.

Here's a breakdown of the shareholding pattern:

The stock is trading at 3.4 times its book value, indicating a relatively high price-to-book ratio.

Muthoot Finance is a large gold financing company in India, with over 5,000 branches across the country.

They have a huge workforce, with over 40,000 employees and agents, and cater to a massive number of customers every day, with 2.5 lakh customers being serviced daily.

Their strong presence in four key states in India is a testament to their extensive reach, with a large number of banking outlets in Kerala (566), Tamil Nadu (960), Karnataka (504), and Andhra Pradesh (392).

Muthoot Finance offers a wide range of services with flexible payment schedules, including gold loan, housing finance, personal loan, insurance, gold coin, money transfer, NCD, mutual funds, microfinance, vehicle loan, home loan, corporate loan, and SME loan.

Here are some of the key services they offer:

You can find Muthoot Finance listed on the stock exchanges as MUTHOOTFIN on the NSE and 533398 on the BSE.

The company has achieved significant milestones over the years. One of the earliest milestones was obtaining an RBI license to operate as an NBFC in 2001.

The company received Fitch Ratings' highest rating of F1 for short-term debt of ₹20 crore in 2004. This was a notable achievement, demonstrating the company's financial stability and reliability.

By 2005, the company's retail loan and debenture portfolio had exceeded ₹50 crore. Muthoot Enterprises Private Limited merged with the parent company in the same year.

In 2006, Fitch Ratings confirmed the company's F1 rating for a short-term debt of ₹40 crore. This reinforced the company's strong financial position.

The company's retail loan portfolio exceeded ₹14 billion in 2007. This was a significant milestone, marking a substantial increase in the company's loan business.

The RBI granted the company Systemically Important ND–NBFC status in 2007. This recognition highlighted the company's importance in the financial system.

By 2008, the company's retail loan and debenture portfolios had both exceeded ₹21 billion and ₹1 billion, respectively. The company became a public limited company in the same year.

The company's net-owned funds surpassed ₹3 billion in 2009. This milestone demonstrated the company's financial strength and stability.

The company's retail loan and debenture portfolios continued to grow, exceeding ₹33 billion and ₹19 billion, respectively, in 2009.

The company's branch network expanded to 1,000 branches in 2010. This marked a significant increase in the company's physical presence.

The company received an 'A1+' rating from ICRA for an INR 200 crore short-term debt in 2010. This rating reinforced the company's financial stability and reliability.

CRISIL assigned a 'P1+' rating to an ₹400 crore short-term debt in 2010. This rating further demonstrated the company's strong financial position.

The company received RBI approval to begin operating 9,000 White Label ATMs in 2013. This marked a significant expansion of the company's services.

The company's Managing Director is Mr. George Alexander Muthoot.

Muthoot Finance has announced several corporate actions in recent years. One notable action was the declaration of interim dividends in 2024, 2023, 2022, and 2021.

These dividends were paid out at a rate of 240%, 220%, 200%, and 200% respectively of the face value of the shares.

The company also declared an interim dividend of Rs. 24.00 per share in 2024, which is a significant increase from the previous year's dividend.

Here is a breakdown of the declared dividends: