Muthoot Finance
Market Cap
₹607.2b
Last Updated
2021/09/19 12:04 UTC
Data Sources
Company Financials +
Executive Summary
Muthoot Finance Limited operates as a gold financing company in India. More Details
Rewards
Risk Analysis
Snowflake Analysis
Proven track record 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
Stable Share Price: MUTHOOTFIN is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MUTHOOTFIN's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-1.7%
MUTHOOTFIN
-0.05%
IN Consumer Finance
1.2%
IN Market
1 Year Return
37.0%
MUTHOOTFIN
80.5%
IN Consumer Finance
59.0%
IN Market
Return vs Industry: MUTHOOTFIN underperformed the Indian Consumer Finance industry which returned 80.5% over the past year.
Return vs Market: MUTHOOTFIN underperformed the Indian Market which returned 59% over the past year.
Shareholder returns
| MUTHOOTFIN | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | -0.05% | 1.2% |
| 30 Day | 3.8% | 10.0% | 7.0% |
| 90 Day | 1.8% | 13.4% | 12.4% |
| 1 Year | 39.4%37.0% | 81.4%80.5% | 61.3%59.0% |
| 3 Year | 252.0%230.9% | 128.0%110.7% | 59.3%51.3% |
| 5 Year | 346.9%303.6% | 219.4%186.0% | 97.1%82.0% |
Long-Term 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
2 weeks ago | Simply Wall St
Have Muthoot Finance Limited (NSE:MUTHOOTFIN) Insiders Been Selling Their Stock?1 month ago | Simply Wall St
Here's Why I Think Muthoot Finance (NSE:MUTHOOTFIN) Might Deserve Your Attention Today3 months ago | Simply Wall St
Did You Participate In Any Of Muthoot Finance's (NSE:MUTHOOTFIN) Incredible 555% Return?Valuation
Is Muthoot Finance undervalued compared to its fair value and its price relative to the market?
15.46x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MUTHOOTFIN (₹1513.5) is trading above our estimate of fair value (₹587.92)
Significantly Below Fair Value: MUTHOOTFIN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MUTHOOTFIN is good value based on its PE Ratio (15.5x) compared to the Indian Consumer Finance industry average (18.4x).
PE vs Market: MUTHOOTFIN is good value based on its PE Ratio (15.5x) compared to the Indian market (20.4x).
Price to Earnings Growth Ratio
PEG Ratio: MUTHOOTFIN is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: MUTHOOTFIN is overvalued based on its PB Ratio (3.9x) compared to the IN Consumer Finance industry average (0.9x).
Future Growth
How is Muthoot Finance forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
17.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MUTHOOTFIN's forecast earnings growth (17.4% per year) is above the savings rate (6.8%).
Earnings vs Market: MUTHOOTFIN's earnings (17.4% per year) are forecast to grow slower than the Indian market (18.4% per year).
High Growth Earnings: MUTHOOTFIN's earnings are forecast to grow, but not significantly.
Revenue vs Market: MUTHOOTFIN's revenue (16% per year) is forecast to grow faster than the Indian market (12.6% per year).
High Growth Revenue: MUTHOOTFIN's revenue (16% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MUTHOOTFIN's Return on Equity is forecast to be high in 3 years time (24.6%)
Past Performance
How has Muthoot Finance performed over the past 5 years?
24.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MUTHOOTFIN has high quality earnings.
Growing Profit Margin: MUTHOOTFIN's current net profit margins (51%) are higher than last year (50.3%).
Past Earnings Growth Analysis
Earnings Trend: MUTHOOTFIN's earnings have grown significantly by 24.2% per year over the past 5 years.
Accelerating Growth: MUTHOOTFIN's earnings growth over the past year (14.4%) is below its 5-year average (24.2% per year).
Earnings vs Industry: MUTHOOTFIN earnings growth over the past year (14.4%) exceeded the Consumer Finance industry 3.3%.
Return on Equity
High ROE: Whilst MUTHOOTFIN's Return on Equity (24.76%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Muthoot Finance's financial position?
Financial Position Analysis
Short Term Liabilities: MUTHOOTFIN's short term assets (₹684.5B) exceed its short term liabilities (₹11.3B).
Long Term Liabilities: MUTHOOTFIN's short term assets (₹684.5B) exceed its long term liabilities (₹530.6B).
Debt to Equity History and Analysis
Debt Level: MUTHOOTFIN's debt to equity ratio (325.6%) is considered high.
Reducing Debt: MUTHOOTFIN's debt to equity ratio has reduced from 336.3% to 325.6% over the past 5 years.
Debt Coverage: MUTHOOTFIN's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if MUTHOOTFIN's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is Muthoot Finance current dividend yield, its reliability and sustainability?
1.32%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MUTHOOTFIN's dividend (1.32%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).
High Dividend: MUTHOOTFIN's dividend (1.32%) is low compared to the top 25% of dividend payers in the Indian market (1.45%).
Stability and Growth of Payments
Stable Dividend: MUTHOOTFIN has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: MUTHOOTFIN's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (20.4%), MUTHOOTFIN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MUTHOOTFIN's dividends in 3 years are forecast to be well covered by earnings (20.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
George Muthoot (66 yo)
no data
Tenure
₹154,180,000
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 serves as Non Executive Director at Muthoot Homefin...
CEO Compensation Analysis
Compensation vs Market: George's total compensation ($USD2.09M) is above average for companies of similar size in the Indian market ($USD715.65K).
Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: MUTHOOTFIN's management team is considered experienced (3 years average tenure).
Board Members
Experienced Board: MUTHOOTFIN's board of directors are considered experienced (3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MUTHOOTFIN insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Muthoot Finance Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Muthoot Finance Limited
- Ticker: MUTHOOTFIN
- Exchange: NSEI
- Founded: 1887
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: ₹607.215b
- Shares outstanding: 401.20m
- Website: https://www.muthootfinance.com
Number of Employees
Location
- Muthoot Finance Limited
- Muthoot Chambers
- 2nd Floor
- Kochi
- Kerala
- 682018
- India
Listings
Biography
Muthoot Finance Limited operates as a gold financing company in India. It provides personal and business loans secured by gold jewelry, or gold loans primarily to individuals; and micro finance. The compan...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/19 12:04 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/03/31 |
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.