NSEI:MUTHOOTFIN

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record with mediocre balance sheet.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

MUTHOOTFIN

-0.4%

IN Consumer Finance

1.3%

IN Market


1 Year Return

75.5%

MUTHOOTFIN

-10.6%

IN Consumer Finance

4.3%

IN Market

Return vs Industry: MUTHOOTFIN exceeded the Indian Consumer Finance industry which returned -10.6% over the past year.

Return vs Market: MUTHOOTFIN exceeded the Indian Market which returned 4.3% over the past year.


Shareholder returns

MUTHOOTFINIndustryMarket
7 Day-2.1%-0.4%1.3%
30 Day-7.1%1.4%2.0%
90 Day-6.4%19.1%13.8%
1 Year79.8%75.5%-6.2%-10.6%6.3%4.3%
3 Year142.3%126.3%32.4%20.8%4.4%-0.5%
5 Year684.0%597.2%187.0%153.5%46.1%35.1%

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 compared to its fair value and its price relative to the market?

12.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MUTHOOTFIN (₹1105) is trading above our estimate of fair value (₹315.08)

Significantly Below Fair Value: MUTHOOTFIN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MUTHOOTFIN is poor value based on its PE Ratio (12.9x) compared to the IN Consumer Finance industry average (11.5x).

PE vs Market: MUTHOOTFIN is good value based on its PE Ratio (12.9x) compared to the Indian market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MUTHOOTFIN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MUTHOOTFIN is overvalued based on its PB Ratio (3.5x) compared to the IN Consumer Finance industry average (0.6x).


Next Steps

Future Growth

How is Muthoot Finance forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

33.5%

Forecasted Diversified Financials industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if MUTHOOTFIN's forecast earnings growth is above the savings rate (7.2%).

Earnings vs Market: Insufficient data to determine if MUTHOOTFIN's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if MUTHOOTFIN's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if MUTHOOTFIN's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MUTHOOTFIN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Muthoot Finance performed over the past 5 years?

25.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MUTHOOTFIN has high quality earnings.

Growing Profit Margin: MUTHOOTFIN's current net profit margins (50.3%) are higher than last year (40.9%).


Past Earnings Growth Analysis

Earnings Trend: MUTHOOTFIN's earnings have grown significantly by 25.8% per year over the past 5 years.

Accelerating Growth: MUTHOOTFIN's earnings growth over the past year (61.6%) exceeds its 5-year average (25.8% per year).

Earnings vs Industry: MUTHOOTFIN earnings growth over the past year (61.6%) exceeded the Consumer Finance industry -5%.


Return on Equity

High ROE: Whilst MUTHOOTFIN's Return on Equity (27.13%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Muthoot Finance's financial position?


Financial Position Analysis

Short Term Liabilities: MUTHOOTFIN's short term assets (₹539.9B) exceed its short term liabilities (₹7.8B).

Long Term Liabilities: MUTHOOTFIN's short term assets (₹539.9B) exceed its long term liabilities (₹439.6B).


Debt to Equity History and Analysis

Debt Level: MUTHOOTFIN's debt to equity ratio (334.1%) is considered high.

Reducing Debt: MUTHOOTFIN's debt to equity ratio has reduced from 370.9% to 334.1% 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


Next Steps

Dividend

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

1.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MUTHOOTFIN's dividend (1.36%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).

High Dividend: MUTHOOTFIN's dividend (1.36%) is low compared to the top 25% of dividend payers in the Indian market (2.23%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.5%), MUTHOOTFIN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

George Muthoot (65 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 ($USD2.10M) is above average for companies of similar size in the Indian market ($USD1.02M).

Compensation vs Earnings: George's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mathai Muthoot
Executive Chairman10.42yrs₹154.18m13.3%
₹ 58.9b
George Muthoot
MD & Whole Time Directorno data₹154.18m10.88%
₹ 48.2b
Oommen Mammen
Chief Financial Officerno data₹48.02m0.028%
₹ 124.2m
Rajesh Warrier
Compliance Officer & Company Secretary1yr₹3.62m0.000060%
₹ 265.9k
Thomas Muthoot
Whole Time Director15.08yrs₹154.18m18.35%
₹ 81.3b
George Muthoot
Whole Time Director15.08yrs₹154.18m14.63%
₹ 64.8b
Alexander Muthoot
Deputy MD & Whole Time Director5.83yrs₹17.08m1.69%
₹ 7.5b
Manoj Jacob
General Manager of Accounts & Taxation23.5yrsno data0.0098%
₹ 43.5m
Kuttickattu Bijimon
Chief General Manager23.5yrsno data0.0078%
₹ 34.8m
Shanthi Ranjan
Chief Manager of Financeno datano datano data
P. George
Chief Risk Officer0.92yrno datano data

3.1yrs

Average Tenure

58yo

Average Age

Experienced Management: MUTHOOTFIN's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mathai Muthoot
Executive Chairman10.42yrs₹154.18m13.3%
₹ 58.9b
George Muthoot
MD & Whole Time Directorno data₹154.18m10.88%
₹ 48.2b
Thomas Muthoot
Whole Time Director15.08yrs₹154.18m18.35%
₹ 81.3b
George Muthoot
Whole Time Director15.08yrs₹154.18m14.63%
₹ 64.8b
Alexander Muthoot
Deputy MD & Whole Time Director5.83yrs₹17.08m1.69%
₹ 7.5b
Ravindra Pisharody
Independent Director1yr₹810.00kno data
Pratip Chaudhuri
Independent Director1yr₹610.00kno data
Pamela Mathew
Independent Director5.83yrs₹1.75mno data
Jacob Koshy
Independent Director3yrs₹1.91mno data
Jose Mathew
Independent Director3yrs₹2.08mno data
Vadakkakara George
Independent Director1yr₹870.00kno data

5.8yrs

Average Tenure

69yo

Average Age

Experienced Board: MUTHOOTFIN's board of directors are considered experienced (5.8 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: ₹443.192b
  • Shares outstanding: 401.08m
  • Website: https://www.muthootfinance.com

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. It provides personal and business loans secured by gold jewelry, or gold loans primarily to individuals; micro finance; and loans to l ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 19:13
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.