Muthoot Finance Ltd.
NSE: MUTHOOTFINMuthoot Finance Ltd.: A 30-second snapshot
Muthoot Finance (₹3,506) is Indias largest gold-loan NBFC, reporting a 98% YoY rise in consolidated profit after tax to ₹10,607 crore for FY26, with AUM at record levels. The stock is up 58.6% over the past year and trades above both its 50-DMA and 200-DMA, while sitting 14.8% below its 52-week high. Trailing PE of 16.3 is the second-lowest among 6 banking-sector peers, and ROE of 26.69% ranks first in the same group.
P/E
16.3
Forward P/E
10.5
ROE
+26.7%
Debt / Equity
384.60
Profit Margin
+51.1%
Div. Yield
+0.9%
5Y ROE > 15%
4/5
5Y FCF > 0
0/5
Quality
57/100
News
8 headlines · 5 positive · 0 negative
MUTHOOTFIN: Record AUM, profit, and yield growth driven by gold price surge and operational expansion - TradingView
TradingView
MUTHOOTFIN: Record gold loan AUM and profits, with stable asset quality and 15% growth guidance - TradingView
TradingView
Muthoot Finance reports 98% increase in consolidated profit after tax for FY26 - Business Upturn
Business Upturn
Muthoot Finance reports highest ever profit after tax at ₹10,607 crore, up 98% YoY - Business Upturn
Business Upturn
MUTHOOTFIN: Record AUM and profit growth, driven by gold loans and digital transformation - TradingView
TradingView
Recent context
- ·FY26 results published 2026-05-14 showed consolidated PAT of ₹10,607 crore, up 98% YoY, alongside record gold-loan AUM; management cited gold price appreciation and branch expansion as primary drivers, and guided 15% AUM growth for the next year.
- ·News sentiment across 8 articles is entirely non-negative (5 positive, 3 neutral, 0 negative) in the 24 hours following results; coverage is concentrated in TradingView and Business Upturn, limiting source diversity.
- ·Analyst count stands at 21 (no mean rating value available in the data); the forward PE of 10.5 versus trailing PE of 16.3 implies market consensus around earnings acceleration — though rising debt trend and 0 FCF years remain structural considerations alongside the results.
Strengths
- +ROE of 26.69% ranks 1st among 6 sector peers (AXISBANK 13.15%, BAJFINANCE 17.91%, HDFCBANK 13.82%, BAJAJFINSV 14.6%, HDFCLIFE 11.28%), sustained above 15% in 4 of the available historical years.
- +Trailing PE of 16.3 is the second-lowest in the peer group (AXISBANK 14.8, HDFCBANK 17.2, BAJFINANCE 29.9, BAJAJFINSV 29.1, HDFCLIFE 69.1), while forward PE contracts further to 10.5, indicating the market prices in earnings growth.
- +Revenue grew 76.5% and earnings grew 97.5% over 5 years; FY26 PAT of ₹10,607 crore represents the highest ever reported figure, with management guiding 15% growth for the next period.
- +Quality score of 61 ranks 1st among 6 peers (AXISBANK 53, BAJFINANCE 53, HDFCBANK 47, BAJAJFINSV 23, HDFCLIFE 20), and the stock is above both its 50-DMA (₹3,383.8) and 200-DMA (₹3,330.6) with RSI at a neutral 52.6.
Weaknesses
- −D/E of 384.6 reflects structural NBFC leverage, and the debt trend is classified as rising — any deterioration in wholesale funding access or cost-of-funds spike would directly compress net interest margins.
- −FCF-positive years in the persistence window: 0. The lending business consumes cash as the loan book grows, meaning the company does not generate retained free cash flow in any measured year; sustained growth requires ongoing external capital.
- −Consistency score of 51 out of 100 and a fundamentals persistence rating of 51 indicate that profitability metrics have not been uniformly stable across all measured years, despite the strong 5-year aggregate growth.
- −At ₹3,506, the stock is 14.8% below its 52-week high and has declined 6.45% over the past 3 months, with nearest technical resistance at ₹3,647 (4% above current price) and a deeper resistance band at ₹3,857–₹3,961.
Open questions
- ?Does the 5-year earnings CAGR of ~97.5% reflect a durable structural shift in gold-loan demand, or is it materially amplified by the sharp rise in gold prices over the same period — and what happens to AUM and margins if gold prices stabilise or decline?
- ?Given that FCF has been 0 in every measured year and debt is trending higher, how does the company plan to fund the guided 15% AUM growth, and what refinancing risks exist if wholesale funding markets tighten?
- ?The forward PE of 10.5 implies the market expects a significant earnings step-up; how does the FY26 PAT of ₹10,607 crore compare with consensus estimates, and does the guidance embed any assumptions about sustained gold-price levels?
- ?With ROE at 26.69% versus the nearest peer (BAJFINANCE at 17.91%), what accounts for the structural gap — is it leverage intensity, product mix, operating efficiency, or a combination — and is that gap defensible over a 3–5 year horizon?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| MUTHOOTFIN | Muthoot Finance Ltd.You're viewing | 16.3 | +26.7% | 61 |
| Industry avg | across 5 peers | 32.0 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.8 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.9 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 29.1 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 69.1 | +11.3% | 20 |
Technical state
Current price
₹3,506.40
SMA 50
₹3,383.83
SMA 200
₹3,330.59
RSI (14)
52.6 (neutral)
From 52w high
-14.8%
1Y return
+58.6%
3M return
-6.5%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 384.6 reflects the NBFC gold-loan funding structure, but 0 FCF-positive years across the persistence window means the lending operation has not generated net free cash flow in any measured year, heightening dependence on continuous wholesale funding access.
- highDebt trend is classified as rising on top of a D/E of 384.6; any tightening of NBFC refinancing conditions or a rise in cost of funds would compress net interest margins directly.
- medium1Y price change data is null for all 5 sector peers (AXISBANK, BAJAJFINSV, BAJFINANCE, HDFCBANK, HDFCLIFE), leaving relative price-momentum ranking unavailable; only PE, ROE, and quality-score comparisons are valid.
- lowNews sample totals 8 articles; 3 are neutral and 5 positive, with 0 negative. Coverage concentration is high — most articles originate from TradingView and Business Upturn on a single day (2026-05-14), limiting breadth of the sentiment signal.
Cross-section contradictions
- ROE of 26.69% ranks 1st among 6 sector peers and has exceeded 15% in 4 of the available years, yet FCF-positive years number 0 — strong book-return metrics coexist with persistent inability to generate net free cash flow. In a gold-loan NBFC, loan-book growth structurally consumes cash, but the magnitude of the gap between ROE and FCF warrants scrutiny of how the funding cost is reflected in return calculations.
- The stock has risen 58.6% over 1 year and trades above both its 50-DMA (₹3,383.8) and 200-DMA (₹3,330.6), yet the forward PE of 10.5 sits 35% below the trailing PE of 16.3 — a compression that implies the market is pricing in substantial near-term earnings acceleration even as debt levels trend higher.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days