Muthoot Finance Ltd.
Banking · NSE
52-week range
₹2,010 – ₹4,115
From 52w high
-14.2%
RSI (14)
54.3
vs SMA 50 / 200
↑ 50 · ↑ 200
Muthoot Finance (MUTHOOTFIN) is a gold-loan NBFC trading at ₹3,481.5, up 52.09% over the past 12 months and above both its 50-DMA (₹3,386.3) and 200-DMA (₹3,323.0). Trailing PE stands at 16.0 with a forward PE of 12.0, ROE of 26.69%, and a profit margin of 51.14% — the highest ROE among its 6 listed Banking-sector peers. The business carries a structural D/E of 384.6 with a rising debt trend and zero FCF-positive years in the measured period, reflecting the capital-intensive nature of scaling an NBFC loan book.
- ✓ROE of 26.69% ranks 1st of 6 sector peers (AXISBANK 13.15%, BAJFINANCE 17.91%, HDFCBANK 13.82%, BAJAJFINSV 14.60%, HDFCLIFE 11.28%), and has remained above 15% for 4 of the measured years.
- ✓Quality score of 61 ranks 1st among 6 peers (next-best BAJFINANCE at 51), suggesting relatively stronger composite fundamentals within this Banking peer group.
- ✓Revenue has grown 76.5% and earnings 97.5% over the trailing 5-year period, reflecting sustained top-line and bottom-line expansion.
- ✓Trailing PE of 16.0 is below BAJFINANCE (31.0) and BAJAJFINSV (30.2), while forward PE of 12.0 implies the market is pricing in continued earnings growth at the current price.
- ✗FCF-positive years is 0 across the entire measured window; the business has not generated net free cash flow in any recorded year, reflecting the structural cash consumption of a growing NBFC loan book funded by wholesale borrowings.
- ✗Debt-to-equity of 384.6 is rising, meaning incremental borrowings are outpacing equity growth; any tightening in NBFC refinancing markets or an RBI regulatory action on gold-loan LTV norms would directly compress margins.
- ✗Consistency score of 51 out of 100 indicates uneven earnings or return patterns across years, tempering the headline 5-year growth figures.
- ✗The stock is 15.39% below its 52-week high of approximately ₹4,117, with the nearest resistance levels at ₹3,647.7, ₹3,857.4, and ₹3,961.5 — each representing a meaningful gap from the current price.
- ·A dividend announcement was reported in early April 2026 alongside a corporate-actions summary that included Aurobindo Pharma buyback; the dividend yield at current price stands at 0.85%.
- ·Multiple earnings-result placeholder pages appeared in news from 8 May 2026 (Q1, Q2, Q4 FY2026), suggesting results-season attention but no substantive reported news on outcome details in the captured headlines.
- ·RSI is 50.77 (neutral), the 3-month price change is -1.9%, and the stock sits approximately 4.8% above the nearest charted support cluster at ₹3,381.9–₹3,385.1, with the next lower support at ₹3,054.6.
- ?Does the 26.69% ROE reflect a durable structural advantage in gold-loan underwriting, or is it sensitive to gold-price cycles and regulatory LTV caps that could compress returns in a down cycle?
- ?Given that FCF has been negative across all measured years, how is the company funding dividend payments and loan-book growth — through fresh equity issuance, subordinated debt, or securitisation — and what does the funding mix imply for cost of funds if wholesale rates rise?
- ?The forward PE of 12.0 is 25% below the trailing PE of 16.0; what earnings trajectory is embedded in that compression, and how sensitive is it to AUM growth assumptions versus margin assumptions?
- ?With the debt trend classified as rising and D/E already at 384.6, what is the company's headroom under its existing borrowing covenants, and how has the RBI's regulatory stance on gold-loan NBFCs evolved in recent quarters?
PE
16.0
Forward PE
12.0
ROE
+26.7%
Profit margin
+51.1%
D/E
384.60
Dividend yield
+0.8%
Quality score
61/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
0/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.