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MUTHOOTFIN: Future Funding Plans And Subsidiary Infusion Will Support Stable Outlook

Upcoming Board Actions And Reforms Will Shape Future Growth Prospects

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MUTHOOTFIN
AnalystConsensusTarget
Not Invested
Published 25 Nov 2024

Update shared on 09 Dec 2025

Fair value Increased 1.65%
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AnalystConsensusTarget's Fair Value
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1Y
75.5%
7D
0.4%

Analysts have nudged their price target on Muthoot Finance slightly higher from ₹3,445 to ₹3,502, citing modestly stronger expectations for revenue growth. This more than offset a small trimming of profit margin assumptions and a marginally higher long term valuation multiple.

What's in the News

  • Board meeting scheduled for November 13, 2025 at 10:30 IST to review and approve unaudited financial results for the quarter and half year ended September 30, 2025 (company filing)
  • Plans to consider fund raising through the issue of Redeemable Non Convertible Debentures, indicating continued use of debt markets to support operations (company filing)
  • Proposal for additional equity infusion of Rs. 500 Crores into wholly owned subsidiary Muthoot Money Limited, highlighting efforts to scale the lending franchise beyond gold loans (company filing)

Valuation Changes

  • Fair Value: Raised slightly from ₹3,445 to ₹3,502 per share, reflecting a modestly higher intrinsic value estimate.
  • Discount Rate: Edged up marginally from 16.02 percent to 16.04 percent, implying a slightly higher required return.
  • Revenue Growth: Nudged higher from 13.12 percent to 13.36 percent, indicating a small upgrade to medium-term growth assumptions.
  • Net Profit Margin: Trimmed slightly from 57.03 percent to 56.66 percent, incorporating somewhat higher cost or competitive pressure expectations.
  • Future P/E: Increased modestly from 18.77x to 19.09x, suggesting a small expansion in the long-term valuation multiple.

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