BSE:533398

Stock Analysis Report

Executive Summary

Muthoot Finance Limited operates as a gold financing company in India.

Snowflake

Fundamentals

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Muthoot Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.0%

BSE:533398

-1.8%

IN Consumer Finance

-0.7%

IN Market


1 Year Return

56.8%

BSE:533398

0.5%

IN Consumer Finance

-12.1%

IN Market

533398 outperformed the Consumer Finance industry which returned 0.2% over the past year.

533398 outperformed the Market in India which returned -12.1% over the past year.


Share holder returns

533398IndustryMarket
7 Day-2.0%-1.8%-0.7%
30 Day1.5%-4.1%-4.6%
90 Day9.6%-1.2%-4.3%
1 Year59.9%56.8%1.1%0.5%-10.3%-12.1%
3 Year93.0%81.7%64.9%61.4%18.9%12.8%
5 Year279.4%232.3%246.0%229.7%37.6%24.7%

Price Volatility Vs. Market

How volatile is Muthoot Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Muthoot Finance undervalued based on future cash flows and its price relative to the stock market?

11.99x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Muthoot Finance's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Muthoot Finance's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Muthoot Finance is good value based on earnings compared to the IN Consumer Finance industry average.

Muthoot Finance is good value based on earnings compared to the India market.


Price Based on Expected Growth

Muthoot Finance is good value based on expected growth next year.


Price Based on Value of Assets

Muthoot Finance is overvalued based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Muthoot Finance expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Muthoot Finance's revenue is expected to grow significantly at over 20% yearly.

Muthoot Finance's earnings are expected to grow by 12.3% yearly, however this is not considered high growth (20% yearly).

Muthoot Finance's revenue growth is expected to exceed the India market average.

Muthoot Finance's earnings growth is positive but not above the India market average.

Muthoot Finance's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Muthoot Finance is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Muthoot Finance performed over the past 5 years?

25.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Muthoot Finance has delivered over 20% year on year earnings growth in the past 5 years.

Muthoot Finance's 1-year earnings growth is less than its 5-year average (14.2% vs 25.3%)

Muthoot Finance's earnings growth has exceeded the IN Consumer Finance industry average in the past year (14.2% vs 12.9%).


Return on Equity

Whilst Muthoot Finance has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Muthoot Finance used its assets more efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Muthoot Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Muthoot Finance's financial position?


Financial Position Analysis

Muthoot Finance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Muthoot Finance's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Muthoot Finance's level of debt (311.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (454.9% vs 311.1% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Muthoot Finance's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

What is Muthoot Finance's current dividend yield, its reliability and sustainability?

2.28%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Muthoot Finance's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).

Muthoot Finance's dividend is below the markets top 25% of dividend payers in India (2.52%).

Muthoot Finance has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Muthoot Finance only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.4x coverage).


Next Steps

Management

What is the CEO of Muthoot Finance's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

George Muthoot (64yo)

9.3yrs

Tenure

₹104,200,000

Compensation

Mr. George Alexander Muthoot, FCA, has been the Managing Director and Whole Time Director of Muthoot Finance Limited since November 20, 2006. Mr. Muthoot served as the Chairman of the Kerala Non banking Fi ...


CEO Compensation Analysis

George's remuneration is higher than average for companies of similar size in India.

George's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.7yrs

Average Tenure

57yo

Average Age

The average tenure for the Muthoot Finance management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.1yrs

Average Tenure

67.5yo

Average Age

The tenure for the Muthoot Finance board of directors is about average.


Insider Trading

Muthoot Finance individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹1,289,00001 Jul 19
Kuttikattu Bijimon
EntityIndividual
Role
Chief General Manager
Shares2,000
Max Price₹644.50
Sell₹325,00013 Jun 19
Kuttikattu Bijimon
EntityIndividual
Role
Chief General Manager
Shares500
Max Price₹650.00
Sell₹1,277,90004 Jun 19
Kuttikattu Bijimon
EntityIndividual
Role
Chief General Manager
Shares2,000
Max Price₹638.95
Sell₹650,00030 May 19
Kuttikattu Bijimon
EntityIndividual
Role
Chief General Manager
Shares1,000
Max Price₹650.00
Sell₹623,90001 Apr 19
Kuttikattu Bijimon
EntityIndividual
Role
Chief General Manager
Shares1,000
Max Price₹623.90
Sell₹299,90014 Mar 19
Kuttikattu Bijimon
EntityIndividual
Role
Chief General Manager
Shares500
Max Price₹599.80
Sell₹877,30013 Mar 19
Kuttikattu Bijimon
EntityIndividual
Role
Chief General Manager
Shares1,500
Max Price₹584.87
Sell₹590,00013 Mar 19
Manoj Jacob
EntityIndividual
Role
General Manager of Accounts & Taxation
Shares1,000
Max Price₹590.00
Sell₹1,397,72508 Mar 19
Kuttikattu Bijimon
EntityIndividual
Role
Chief General Manager
Shares2,500
Max Price₹559.09
Sell₹841,50007 Mar 19
K. Chandran
EntityIndividual
Shares1,500
Max Price₹561.00
Sell₹517,40015 Feb 19
Kuttikattu Bijimon
EntityIndividual
Role
Chief General Manager
Shares1,000
Max Price₹517.40
Sell₹805,45014 Jan 19
Kuttikattu Bijimon
EntityIndividual
Role
Chief General Manager
Shares1,500
Max Price₹536.97
Sell₹781,50009 Jan 19
Kuttikattu Bijimon
EntityIndividual
Role
Chief General Manager
Shares1,500
Max Price₹521.00
Sell₹1,200,00029 Dec 18
C. V. John
EntityIndividual
Shares2,400
Max Price₹500.00
Sell₹3,450,00020 Dec 18
Manoj Jacob
EntityIndividual
Role
General Manager of Accounts & Taxation
Shares7,000
Max Price₹492.86
Sell₹968,16512 Dec 18
Manoj Jacob
EntityIndividual
Role
General Manager of Accounts & Taxation
Shares2,000
Max Price₹484.08
Sell₹944,60021 Nov 18
Manoj Jacob
EntityIndividual
Role
General Manager of Accounts & Taxation
Shares2,000
Max Price₹472.30
Sell₹574,27210 Sep 18
Kuttikattu Bijimon
EntityIndividual
Role
Chief General Manager
Shares1,250
Max Price₹459.42

Ownership Breakdown


Management Team

  • Mathai Muthoot (70yo)

    Executive Chairman

    • Compensation: 104.20m
  • Manoj Jacob (57yo)

    General Manager of Accounts & Taxation

  • Shanthi Ranjan

    Chief Manager of Finance

  • George Muthoot (67yo)

    Whole Time Director

    • Compensation: 104.20m
  • Maxin James

    Company Secretary & Compliance Officer

    • Tenure: 5.7yrs
  • George Muthoot (64yo)

    MD & Whole Time Director

    • Tenure: 9.3yrs
    • Compensation: 104.20m
  • Oommen Mammen

    Chief Financial Officer

  • Alexander Muthoot (39yo)

    Deputy MD & Whole Time Director

    • Tenure: 2.0yrs
    • Compensation: 10.50m
  • Thomas Muthoot (56yo)

    Whole Time Director

    • Compensation: 104.20m
  • Kuttikattu Bijimon (49yo)

    Chief General Manager


Board Members

  • Mathai Muthoot (70yo)

    Executive Chairman

    • Tenure: 9.3yrs
    • Compensation: 104.20m
  • Jose Mathew (68yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: 742.50k
  • Jacob Koshy (72yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: 682.50k
  • John Paul (66yo)

    Non-Executive Independent Director

    • Tenure: 9.1yrs
    • Compensation: 1.07m
  • George Muthoot (67yo)

    Whole Time Director

    • Tenure: 9.3yrs
    • Compensation: 104.20m
  • Pamela Mathew (69yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: 1.06m
  • George Muthoot (64yo)

    MD & Whole Time Director

    • Tenure: 12.8yrs
    • Compensation: 104.20m
  • Alexander Muthoot (39yo)

    Deputy MD & Whole Time Director

    • Tenure: 4.8yrs
    • Compensation: 10.50m
  • Thomas Muthoot (56yo)

    Whole Time Director

    • Tenure: 14.0yrs
    • Compensation: 104.20m
  • George Muthoot (70yo)

    Non-Executive Independent Director

    • Tenure: 9.1yrs
    • Compensation: 1.26m

Company Information

Muthoot Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Muthoot Finance Limited
  • Ticker: 533398
  • Exchange: BSE
  • Founded: 1939
  • Industry: consumer finance
  • Sector: diversified financials
  • Market Cap: ₹254.466b
  • Shares outstanding: 400.70m
  • Website: Click here

Number of Employees


Location

  • Muthoot Finance Limited
  • Muthoot Chambers
  • 2nd Floor
  • Kochi
  • Kerala
  • 682018
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
533398BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2011
MUTHOOTFINNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2011

Biography

Muthoot Finance Limited operates as a gold financing company in India. The company operates through two segments, Financing and Power Generation. It provides personal and business loans secured by gold jew ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 12:53
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.