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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Muthoot Capital Services Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:52 pm

Market Cap 560 Cr.
Current Price 341
High / Low425/262
Stock P/E11.6
Book Value 389
Dividend Yield0.00 %
ROCE12.3 %
ROE9.43 %
Face Value 10.0
PEG Ratio0.65

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Muthoot Capital Services Ltd

Competitors of Muthoot Capital Services Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Nam Securities Ltd 85.7 Cr. 159198/62.8238 21.20.00 %4.16 %3.05 % 10.0
Naperol Investments Ltd 828 Cr. 1,4412,041/801845 3,2040.00 %0.08 %0.05 % 10.0
Inani Securities Ltd 14.1 Cr. 31.042.0/20.59.75 42.20.00 %10.6 %6.92 % 10.0
HCKK Ventures Ltd 43.5 Cr. 117154/77.4241 11.50.00 %8.17 %6.44 % 10.0
HB Portfolio Ltd 108 Cr. 101177/57.014.6 2790.99 %3.34 %2.90 % 10.0
Industry Average7,266.15 Cr2,238.7176.535,594.840.28%15.23%17.14%7.45

All Competitor Stocks of Muthoot Capital Services Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Revenue1201099899931091061101131161079896
Interest45424039363433353843444140
Expenses575577705027854504736384344
Financing Profit1812-20-116-20320242737241413
Financing Margin %15%11%-20%-11%7%-187%19%22%24%32%23%15%13%
Other Income00000000000981
Depreciation0000000000000
Profit before tax1912-20-116-203202428372411213
Tax %26%25%25%24%27%25%26%25%28%30%27%26%25%
Net Profit149-15-84-15215182026188310
EPS in Rs8.355.50-9.14-4.912.69-92.318.9611.0712.0315.7810.7950.596.09
Gross NPA %11.40%11.70%16.70%19.30%27.80%18.70%25.27%23.58%21.86%20.55%21.08%11.67%10.69%
Net NPA %4.40%5.60%9.50%10.80%18.60%9.90%5.15%4.47%3.63%2.58%2.57%3.88%3.55%

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Revenue67107159191228284398518586504411444417
Interest2036607798125167238303248209227168
Expenses2438627994112148147188186417109160
Financing Profit233236353647831349570-21510989
Financing Margin %34%30%23%18%16%17%21%26%16%14%-52%25%21%
Other Income00-210000010099
Depreciation0111111121111
Profit before tax233234343546821339370-216109187
Tax %33%33%34%35%36%35%35%35%35%26%25%28%
Net Profit16222222233054866051-16279137
EPS in Rs11.3215.8816.2116.2716.6821.9632.6452.3536.7731.29-98.4647.8483.25
Dividend Payout %28%23%25%28%30%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)37.50%0.00%0.00%4.55%30.43%80.00%59.26%-30.23%-15.00%-417.65%148.77%
Change in YoY Net Profit Growth (%)0.00%-37.50%0.00%4.55%25.89%49.57%-20.74%-89.49%15.23%-402.65%566.41%

Muthoot Capital Services Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:-5%
3 Years:-8%
TTM:-7%
Compounded Profit Growth
10 Years:8%
5 Years:-10%
3 Years:0%
TTM:-50%
Stock Price CAGR
10 Years:6%
5 Years:-6%
3 Years:-3%
1 Year:-13%
Return on Equity
10 Years:8%
5 Years:3%
3 Years:-2%
Last Year:9%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:30 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital12121212121616161616161616
Reserves90106121135166377431491543395473595623
Borrowings3545717008789911,4412,1262,3511,9451,6251,8911,6602,155
Other Liabilities2025434710914367555663554253
Total Liabilities4767158761,0721,2781,9782,6402,9132,5602,0992,4352,3142,848
Fixed Assets2322222432266
CWIP0000000000000
Investments07141415182016162746107122
Other Assets4747058601,0571,2611,9572,6182,8932,5402,0692,3882,2012,720
Total Assets4767158761,0721,2781,9782,6402,9132,5602,0992,4352,3142,848

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-142-199-129-166-99-614-5012467073-46-7
Cash from Investing Activity +-2-8-60-2-3021-9-17-63
Cash from Financing Activity +135214130165107619529229-416-311272-251
Net Cash Flow-97-5-06229255255-248209-321

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow24.00-316.00-509.00-621.00-784.00-879.00147.00145.00186.00185.00416.00108.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %23%21%18%16%18%19%20%13%10%-33%17%9%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters62.62%62.62%62.62%62.62%62.62%62.62%62.62%62.62%62.62%62.62%62.62%62.62%
FIIs9.63%9.58%9.63%8.97%0.51%0.56%0.61%0.97%1.56%1.35%1.36%1.32%
DIIs6.75%6.75%6.68%5.98%3.07%0.18%0.88%0.86%0.93%0.68%0.68%0.84%
Public21.01%21.05%21.07%22.43%33.80%36.63%35.90%35.55%34.88%35.35%35.33%35.22%
No. of Shareholders20,22719,39418,95620,13421,48520,31619,67418,72518,02218,65819,73319,782

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)74.5847.84-104.5431.2936.77
Diluted EPS (Rs.)74.5847.84-104.5431.2936.77
Cash EPS (Rs.)75.1048.23-103.9332.0737.76
Book Value[Excl.RevalReserv]/Share (Rs.)371.94297.46235.71340.16308.44
Book Value[Incl.RevalReserv]/Share (Rs.)371.94297.46235.71340.16308.44
Revenue From Operations / Share (Rs.)242.22270.07241.63306.47356.53
PBDIT / Share (Rs.)144.05156.62-47.52156.75196.26
PBIT / Share (Rs.)143.52156.22-48.10155.96195.26
PBT / Share (Rs.)99.9266.15-139.2442.2556.82
Net Profit / Share (Rs.)74.5847.84-104.5231.2836.77
PBDIT Margin (%)59.4657.99-19.6651.1455.04
PBIT Margin (%)59.2557.84-19.9050.8854.76
PBT Margin (%)41.2424.49-57.6213.7815.93
Net Profit Margin (%)30.7817.71-43.2510.2010.31
Return on Networth / Equity (%)20.0516.08-44.349.1911.92
Return on Capital Employeed (%)38.2231.86-12.3126.3950.79
Return On Assets (%)5.303.23-8.282.012.07
Long Term Debt / Equity (X)0.000.630.640.720.21
Total Debt / Equity (X)1.943.874.193.484.63
Asset Turnover Ratio (%)0.160.190.170.180.21
Current Ratio (X)1.311.421.351.581.26
Quick Ratio (X)1.311.421.351.581.26
Interest Coverage Ratio (X)1.411.74-0.521.381.42
Interest Coverage Ratio (Post Tax) (X)1.161.53-0.141.281.27
Enterprise Value (Cr.)1381.791738.331718.071938.922363.32
EV / Net Operating Revenue (X)3.473.914.323.854.03
EV / EBITDA (X)5.836.75-21.987.527.32
MarketCap / Net Operating Revenue (X)1.110.941.081.200.70
Price / BV (X)0.720.861.111.080.81
Price / Net Operating Revenue (X)1.110.941.081.200.70
EarningsYield0.270.18-0.400.080.14

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Muthoot Capital Services Ltd as of November 24, 2024 is: 434.03

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Muthoot Capital Services Ltd is Undervalued by 27.28% compared to the current share price 341.00

Intrinsic Value of Muthoot Capital Services Ltd as of November 24, 2024 is: 511.09

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Muthoot Capital Services Ltd is Undervalued by 49.88% compared to the current share price 341.00

Last 5 Year EPS CAGR: 17.75%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Muthoot Capital Services Ltd:
    1. Net Profit Margin: 30.78%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 38.22% (Industry Average ROCE: 15.23%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 20.05% (Industry Average ROE: 17.14%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.16
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.31
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 11.6 (Industry average Stock P/E: 76.53)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.94
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Muthoot Capital Services Ltd. is a Public Limited Listed company incorporated on 18/02/1994 and has its registered office in the State of Kerala, India. Company’s Corporate Identification Number(CIN) is L67120KL1994PLC007726 and registration number is 007726. Currently company belongs to the Industry of Finance & Investments. Company’s Total Operating Revenue is Rs. 397.49 Cr. and Equity Capital is Rs. 16.45 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Non-Banking Financial Company (NBFC)3rd Floor, Kochi Kerala 682035investorgrievance@muthootcap.com
http://www.muthootcap.com
Management
NamePosition Held
Mr. Thomas John MuthootChairman
Mr. Thomas George MuthootManaging Director
Mr. Thomas MuthootDirector
Mr. A P KurianIndependent Director
Mr. Thomas MathewIndependent Director
Mrs. Shirley ThomasIndependent Woman Director

FAQ

What is the latest intrinsic value of Muthoot Capital Services Ltd?

The latest intrinsic value of Muthoot Capital Services Ltd as on 24 November 2024 is ₹434.03, which is 27.28% higher than the current market price of ₹341.00.

What is the Market Cap of Muthoot Capital Services Ltd?

The Market Cap of Muthoot Capital Services Ltd is 560 Cr..

What is the current Stock Price of Muthoot Capital Services Ltd as on 24 November 2024?

The current stock price of Muthoot Capital Services Ltd as on 24 November 2024 is 341.

What is the High / Low of Muthoot Capital Services Ltd stocks in FY 2024?

In FY 2024, the High / Low of Muthoot Capital Services Ltd stocks is 425/262.

What is the Stock P/E of Muthoot Capital Services Ltd?

The Stock P/E of Muthoot Capital Services Ltd is 11.6.

What is the Book Value of Muthoot Capital Services Ltd?

The Book Value of Muthoot Capital Services Ltd is 389.

What is the Dividend Yield of Muthoot Capital Services Ltd?

The Dividend Yield of Muthoot Capital Services Ltd is 0.00 %.

What is the ROCE of Muthoot Capital Services Ltd?

The ROCE of Muthoot Capital Services Ltd is 12.3 %.

What is the ROE of Muthoot Capital Services Ltd?

The ROE of Muthoot Capital Services Ltd is 9.43 %.

What is the Face Value of Muthoot Capital Services Ltd?

The Face Value of Muthoot Capital Services Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Muthoot Capital Services Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE