Muthoot Finance Ltd - Stock Valuation and Financial Performance

BSE: 533398 | NSE: MUTHOOTFIN | Finance - NBFC | Mid Cap

Muthoot Finance Share Price

1,666.85 17.85 1.08%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Muthoot Finance

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Muthoot Finance stock performance -

mw4me loader
P/E Ratio (SA):
17.18
Market Cap:
66,917.6 Cr.
52-wk low:
1,003.9
52-wk high:
1,697.4

Is Muthoot Finance Ltd an attractive stock to invest in?

1. Is Muthoot Finance Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Muthoot Finance Ltd is a average quality company.

2. Is Muthoot Finance Ltd undervalued or overvalued?

The key valuation ratios of Muthoot Finance Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Muthoot Finance Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Muthoot Finance Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Muthoot Finance:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Muthoot Finance Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Operating Income (₹ Cr.)4,9284,3144,8615,7296,2676,8788,71510,55711,08210,51511,988
YoY Gr. Rt. %--12.5%12.7%17.8%9.4%9.8%26.7%21.1%5%-5.1%-
Adj EPS (₹ ) 2116.920.329.544.449.275.392.898.586.597.1
YoY Gr. Rt. %--19.7%20.4%45.5%50.5%10.8%52.9%23.3%6.2%-12.2%-
BVPS (₹ )114.5127.2140.3162.6194.8244288.2379.6456.9524.6578.9
YoY Gr. Rt. %-11.2%10.3%15.9%19.8%25.2%18.1%31.7%20.4%14.8%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)2.82.5345.75.76.86.55.94.90

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest Income8.8%10.9%6.5%-5.1%
Adj EPS17%14.3%4.8%-12.2%
BVPS18.4%21.9%22.1%14.8%
Share Price 26.1% 22.3% 13.1% 61.2%

Key Financial Ratios

RATIOS \ YEARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)1.61.92.51.76.20.71.7000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 24.724.824.524.926.626.125.5000-
Margins
Net Profit Margin (%)15.815.516.720.628.428.734.635.335.73332.5
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)19.514.415.219.524.922.528.327.823.617.616.8

Recent Performance Summary

Total Income has increased 6.46 CAGR in last 3 years

Net Profit has increased 4.76 CAGR in last 3 years

Total income growth is good in last 4 quarters

Return on Equity has declined versus last 3 years average to 17.60%

Latest Financials - Muthoot Finance Ltd.

Standalone Consolidated
TTM EPS (₹) 97.1 103.6
TTM Sales (₹ Cr.) 11,988 13,964
BVPS (₹.) 578.9 598.3
Reserves (₹ Cr.) 22,837 23,616
P/BV 2.88 2.79
PE 17.18 16.09
From the Market
52 Week Low / High (₹) 1003.85 / 1697.35
All Time Low / High (₹) 73.60 / 1722.55
Market Cap (₹ Cr.) 66,918
Equity (₹ Cr.) 401.5
Face Value (₹) 10
Industry PE 32.5

Management X-Ray of Muthoot Finance:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Muthoot Finance

Adj EPS (Rs.)

Total Income (Cr.)

ROE (%)

BVPS (Rs.)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Income4,9584,3254,8755,7476,3336,8818,72310,57411,09810,544
Interest Income4,9284,3144,8615,7296,2676,8788,71510,55711,08210,515
Other Income 311114186728171629
Expenditure 3,7653,2973,5583,8263,4883,8044,6655,5685,7895,877
Interest Expense 2,6302,1082,2602,2981,9352,2432,7963,6993,8453,709
Operating Expenses 1,0801,1431,1221,2311,2871,4961,6921,6851,7342,005
Provisions 554617729726765177184211163
Exceptional Items 0000000000
Profit Before Tax 1,1941,0281,3171,9212,8453,0774,0575,0075,3094,666
Taxes 4133575077411,0671,1051,0391,2841,3551,193
Profit After Tax 7806718101,1801,7781,9723,0183,7223,9543,474
Adjusted EPS (₹)21.016.920.329.544.449.275.392.898.586.5
Dividend Payout Ratio (%)29%36%30%20%23%24%20%22%20%25%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Equity Capital4,2655,0845,6196,5167,8129,79311,57215,23918,34521,062
Share Capital 372398399399400401401401401401
Reserves 3,8934,6865,2206,1177,4129,39211,17114,83817,94320,660
Minority Interest0000000000
Long Term Borrowings7,7837,8866,3514,8487,6569,70013,21421,43627,73330,388
Current Liabilities 13,93214,11815,38619,99115,31718,55925,67426,76124,42821,130
Trade Payables425161111124163218202151196
Short term borrowings6,0647,7618,36412,75513,80017,14723,95824,52222,06619,346
Other Liabilities-6,106-7,812-8,425-12,866-13,924-17,311-24,176-24,723-22,217-19,541
Total Liabilities 25,98027,08827,35631,35530,78638,05150,46063,43670,50672,580

Assets

Non Current Asset 4344014265417041,3041,3991,5041,7641,792
Loan Asset 00012000000
Other Non Current Asset 4344014265297041,3041,3991,5041,7641,792
Current Asset 25,54626,68726,93030,81430,08236,74749,06161,93268,74270,788
Current Investment310001040752345
Other Current Asset25,51626,68726,93030,81430,08136,74748,65461,40968,73870,783
Total Assets 25,98027,08827,35631,35530,78638,05150,46063,43670,50672,580

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 5,726-460214-1,710-87-3,858-4,458-7,477-1,142-1,902
Cash Flow From Investing Activity -3-16-67-134-194-585-42948408188
Cash Flow From Financing Activity -5,107254-1,2042,457-5545,7018,6789,0412,796-1,036
Net Cash Flow 617-222-1,058613-8341,2583,7911,6122,062-2,750
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Operational & Financial Ratios

EPS (₹)21172030444975939987
DPS (₹)6666101215202022
BVPS (₹)114127140163195244288380457525

Performance Ratios

ROA (%)2.82.53.04.05.75.76.86.55.94.9
ROE (%)19.514.415.219.524.922.528.327.823.617.6
ROCE (%)14.813.014.716.316.916.216.115.814.212.1

Valuation Parameters

Price/Book(x)1.51.61.32.32.12.52.13.22.91.9

Muthoot Finance Ltd Stock News

Muthoot Finance Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Muthoot Finance on 12-Apr-2024 16:59 is ₹1,666.9.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of Muthoot Finance stood at ₹66,917.6.
The latest P/E ratio of Muthoot Finance as of 12-Apr-2024 16:59 is 17.18.
The latest P/B ratio of Muthoot Finance as of 12-Apr-2024 16:59 is 2.88.
The 52-week high of Muthoot Finance is ₹1,697.4 and the 52-week low is ₹1,003.9.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Muthoot Finance is ₹11,988 ( Cr.) .

About Muthoot Finance Ltd

Muthoot Finance Limited was incorporated as a private limited Company on March 14, 1997 and was converted into a public limited Company on November 18, 2008. The Company is promoted by Mr. M. G. George Muthoot, Mr. George Thomas Muthoot, Mr. George Jacob Muthoot and Mr. George Alexander Muthoot collectively operating under the brand name of ‘The Muthoot Group’, which has diversified interests in the fields of Financial Services, Healthcare, Education, Plantations, Real Estate, Foreign Exchange, Information Technology, Insurance Distribution, Hospitality etc. The Company obtained permission from the Reserve Bank of India for carrying on the business of Non-Banking Financial Institutions on 13-11-2001. The Company is presently classified as Systemically Important Non-Deposit Taking NBFC (NBFC-ND-SI).

Business area of the company

Muthoot Finance is a non-banking financial company (NBFC), which is engaged in providing loan (financing) against collateral of gold jewelry. The company offers gold loans, foreign inward money transfer services, foreign exchange services, insurance broking etc.

Services offered by the company

  • Gold Loan
  • Housing Finance
  • Personal Loan
  • Insurance 
  • Gold Coin
  • Money Transfer
  • Foreign Exchange
  • NcCDMutual Funds
  • Travel Jango
  • Muthoot Will
  • Pan Card
  • Micro Finance
  • Digital And Cashless
  • Vehicle Loan

Awards

  • Business Leader Award 2014, instituted by Cochin Herald
  • Mahatma Gandhi National Award for social service in 2001 by the Mahatma Gandhi National Foundation
  • Asian Businessman of the Year 2011 award from the UK Kerala Business Forum
  • Business Leadership Award for the year 2012 at the Golden Peacock Awards, Bengaluru
  • Several awards from Rotary International and Y’s Men International for community development and social service
  • Ranked as one of the Top 40 BFSI CEOs in India by the country’s leading business magazine, Business Today, in its January 2017 issue; the research was jointly conducted by Business Today and reputed multinational audit, assurance and professional services firm, PricewaterhouseCoopers (PwC)
  • Emerging Business Leader of the Year at the fifth edition of AIMA Managing India Awards 2014
  • Muthoot Finance was also awarded the coveted Primetime Awards 2019 in the Banking, Financial Services & Insurance category for its creative & integrated marketing campaign “Soch Badaliye Aur Life Mein Aagey Badhiye.
  • Best Creative Campaign in the BFSI sector at the Exchange4media Prime Time Awards, 2019
  • Economic Times BFSI Excellence Award 2019 for Mass Consumer Outreach
  • Gold at the Flame Awards Asia, 2019 for the ‘Muthoot Vishwaas Ki Tijori’ campaign
  • Gold in the ‘Innovative Creation of a New Medium Category’ at the 10th NEONS Out-of-Home Awards,2020
  • Kumbh Initiative Muthoot Finance Vishwaas Ki Tijori also bagged Gold in the 'Innovative Creation of a New Medium Category' at the 10th edition of ‘NEONS Out Of Home Awards 2020’.

Milestones

  • 1887- The Group came into being as a trading business in a Kerala village.
  • 1939- Commenced Gold Loan business
  • 2001- Muthoot Finance received RBI License to function as an NBFC.
  • 2004- Received highest rating of F1 from Fitch Ratings for a short-term debt of Rs 200 million.
  • 2005- Retail Loan and debenture portfolio crossed Rs 5 billion
  • 2007- Retail Loan portfolio crossed Rs 14 billion.
  • 2007- Net owned funds crossed Rs 1 billion.
  • 2007- Accorded SI-ND-NBFC status.
  • 2007- Branch network crossed 500 branches.
  • 2008- Retail Loan portfolio crossed Rs 21 billion.
  • 2008- Retail debenture portfolio crossed Rs 1 billion.
  • 2008- Fitch affirmed the F1 short term debt rating with an enhanced amount of Rs 800 million.
  • 2008- Converted into a Public Limited Company.
  • 2009- Retail Loan portfolio crossed Rs 33 billion.
  • 2009- Retail debenture portfolio crossed Rs 19 billion.
  • 2009- Net owned funds crossed Rs 3 billion.
  • 2009- Gross annual income crossed Rs 6 billion.
  • 2009- Bank credit limits crossed Rs 10 billion.
  • 2009- Branch network crossed 900 branches.
  • 2010- Retail Loan portfolio crossed Rs 74 billion.
  • 2010- Retail debenture portfolio crossed Rs 27 billion.
  • 2010- CRISIL assigned ‘P1+’ rating for short term debt of Rs 4 billion, ICRA assigned A1+ for short term debt of Rs 2 billion.
  • 2010- Net owned funds crossed Rs 5 billion.
  • 2010- Gross annual income crossed Rs 10 billion.
  • 2010- Bank credit limits crossed Rs 17 billion.
  • 2010- Branch network crossed 1,600 branches.
  • 2011- Retail Loan portfolio crossed Rs 158 billion.
  • 2011- Retail debenture portfolio crossed Rs 39 billion.
  • 2011- CRISIL assigned long-term rating of AA- Stable for Rs 1 billion subordinated debt issue and for Rs 4 billion non-convertible debentures issue respectively.
  • 2011- ICRA assigned long-term rating of AA- Stable for Rs 1 billion subordinated debt issue and for Rs 2 billion non-convertible debentures issue respectively.
  • 2011- PE Investments of Rs 2556.85 million in the company by Matrix partners, LLC The Welcome Trust, Kotak PE, Kotak Investments and Baring India PE.
  • 2011- Net owned funds crossed Rs 13 billion.
  • 2011- Gross annual income crossed Rs 23 billion.
  • 2011- Bank credit limit crossed Rs 60 billion.
  • 2011- Branch network crossed 2,700 branches.
  • 2012- Retail Loan portfolio crossed Rs 246 billion.
  • 2012- Retail debenture portfolio crossed Rs 66 billion.
  • 2012- ICRA assigned long-term rating of AA- Stable and short-term rating of A1+ for Rs 9,353 crore Line of credit.
  • 2012- Successful IPO of Rs 9,012.50 million in April 2011.
  • 2012- Raised Rs 6.93 billion through Non-convertible Debenture Public Issue- Series I.
  • 2012- Raised Rs 4.59 billion through Non-convertible Debenture Public Issue - Series II.
  • 2012- Net owned funds crossed Rs 29 billion.
  • 2012- Gross annual income crossed Rs 45 billion.
  • 2012- Bank credit limit crossed Rs 92 billion.
  • 2012- Branch network crossed 3,600 branches.
  • 2013- Raised Rs 2.59 billion through Non-Convertible Debenture Public Issue - Series III
  • 2013- Obtained RBI license to start operating 9,000 White Label ATMs
  • 2013- Branch network crossed 4,400 branches
  • 2013- Raised Rs 2.77 billion through NCD Public Issue - Series IV
  • 2013- Raised Rs 3.0 billion through NCD Public Issue -Series V
  • 2014- Raised Rs 418 crore through oversubscribed (1.8 times) Institutional Placement Programme (IPP)
  • 2014- Acquired 51 percent equity shares of Colombo-based PLC, Asia Asset Finance (AAF)
  • 2015- Issued 25,351,062 fresh equity shares by way of an institutional placement programme under Chapter VIII-A of the SEBI ICDR Regulations, aggregating up to Rs 4,182.93 million.
  • 2015- Listed Debenture Portfolio raised through public issue Rs 14.62 billion.
  • 2015- Retail Loan Portfolio touched Rs 234.09 billion.
  • 2015- Net owned funds crossed Rs 50 billion.
  • 2015- Gross annual income touched Rs 43.25 billion.
  • 2015- Profit after tax for the year touched Rs 6.71 billion.
  • 2016- Retail Loan Portfolio crossed Rs 243 billion.
  • 2016- Listed Debenture Portfolio raised through public issue Rs 12.39 billion.
  • 2016- Net Owned Funds crossed Rs 55 billion.
  • 2016- Gross annual income touched Rs 48.75 billion.
  • 2016- Profit after tax for the year touched Rs 8.10 billion.
  • 2016- Acquired 79% of the equity capital of Muthoot Homefin (India) Limited (MHIL). MHIL is a Housing Finance Company Registered with The National Housing Bank
  • 2016- Acquired Muthoot Insurance Brokers Private Limited (MIBPL) as a wholly-owned subsidiary in June 2016. MIBPL is an unlisted private limited company holding a licence to act as direct broker from IRDA since 2013
  • 2016- Acquired 46.83% of the capital of Belstar Investment and Finance Private Limited (BIFPL) in July 2016. BIFPL was reclassified as an ‘NBFC-MFI’ by RBI with effect from 11th December, 2013
  • 2016- CRISIL and ICRA upgraded long-term debt rating from AA-/Stable to AA/Stable.
  • 2017- Loan Assets Portfolio crossed Rs 272 billion.
  • 2017- Listed Debenture Portfolio raised through public issue Rs 18.31 billion.
  • 2017- Net Owned Funds crossed Rs 64 billion.
  • 2017- Gross annual income touched Rs 57.46 billion.
  • 2017- Profit after tax for the year touched Rs 11.80 billion.
  • 2017- Increased stake in BIFPL to 64.60% thus making it a subsidiary.
  • 2017- Enlarged stake in MHIL to 88.27%.
  • 2017- Improved stake in AAF to 60%.
  • 2018- Loan Assets Portfolio crossed Rs 291 billion.
  • 2018- Listed Debenture Portfolio raised through public issue of Rs 19.69 billion.
  • 2018- Net Owned Funds crossed Rs 77 billion.
  • 2018- Gross Annual Income touched Rs 62.43 billion.
  • 2018- Profit after tax for the year touched Rs 17.20 billion.
  • 2018- Branch network crossed 4,300.
  • 2018- Increased stake in BIFPL to 66.61%.
  • 2018- Enlarged stake in MHIL to 100% making it a wholly-owned subsidiary.
  • 2019- Loan Assets Portfolio crossed Rs 342 billion.
  • 2019- Listed Debenture Portfolio raised through public issue of Rs 37.09 billion.
  • 2019- Net Owned Funds crossed Rs 97.69 billion.
  • 2019- Gross Annual Income touched Rs 68.81 billion.
  • 2020- Muthoot Finance raises $550 million from international bond markets.
  • 2020- Fitch Ratings affirms Muthoot Finance's Long Term Issuer Default ratings.
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