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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Muthoot Finance Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 9:42 pm

Market Cap 76,136 Cr.
Current Price 1,896
High / Low2,079/1,262
Stock P/E17.2
Book Value 640
Dividend Yield1.27 %
ROCE13.2 %
ROE17.9 %
Face Value 10.0
PEG Ratio3.30

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

View Share Price Target for Muthoot Finance Ltd

Competitors of Muthoot Finance Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Nam Securities Ltd 85.7 Cr. 159198/59.3238 21.20.00 %4.16 %3.05 % 10.0
Naperol Investments Ltd 845 Cr. 1,4702,041/801862 3,2040.00 %0.08 %0.05 % 10.0
Inani Securities Ltd 14.1 Cr. 30.842.0/20.59.70 42.20.00 %10.6 %6.92 % 10.0
HCKK Ventures Ltd 41.4 Cr. 112154/77.4230 11.50.00 %8.17 %6.44 % 10.0
HB Portfolio Ltd 107 Cr. 99.5177/54.314.4 2791.01 %3.34 %2.90 % 10.0
Industry Average7,175.33 Cr2,337.8076.675,594.830.28%15.23%17.14%7.45

All Competitor Stocks of Muthoot Finance Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Revenue2,7652,8242,7142,8302,8682,6702,5042,4982,6602,8532,9993,0603,168
Interest9469519829799539219429039149411,0641,1561,212
Expenses485512421501527450473426531690635572566
Financing Profit1,3341,3611,3101,3501,3881,2991,0891,1691,2141,2231,3001,3321,390
Financing Margin %48%48%48%48%48%49%44%47%46%43%43%44%44%
Other Income12413485671028148
Depreciation14151113141613141517131517
Profit before tax1,3311,3501,3001,3401,3781,2921,0821,1611,2071,2161,3151,3301,380
Tax %26%26%25%26%25%26%26%25%25%26%26%26%26%
Net Profit9919969719941,0299608028679029039759911,027
EPS in Rs24.7124.8224.2124.7725.6423.9319.9821.6022.4622.4924.2924.6925.59
Gross NPA %2.99%2.13%2.58%3.79%4.26%4.01%3.62%
Net NPA %2.68%1.90%2.31%3.40%3.82%3.59%3.23%

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
Revenue4,5495,3874,9474,3254,8755,7466,2676,8788,71510,55711,08210,51512,080
Interest2,3722,8232,6302,1082,2602,2981,9352,2432,7963,6993,8453,7094,373
Expenses8131,0071,0771,1051,2411,4791,5101,5181,8271,8181,8912,1102,462
Financing Profit1,3641,5571,2411,1121,3741,9692,8223,1174,0925,0405,3474,6965,245
Financing Margin %30%29%25%26%28%34%45%45%47%48%48%45%43%
Other Income000000662817162960
Depreciation33454784584844424351545863
Profit before tax1,3311,5111,1941,0281,3171,9212,8453,0774,0575,0075,3094,6665,242
Tax %33%34%35%35%39%39%38%36%26%26%26%26%
Net Profit8921,0047806718101,1801,7781,9723,0183,7223,9543,4743,896
EPS in Rs24.0027.0220.9916.8520.2929.5344.4349.2275.2692.7898.5386.5297.06
Dividend Payout %17%17%29%36%30%20%23%24%20%22%20%25%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)12.56%-22.31%-13.97%20.72%45.68%50.68%10.91%53.04%23.33%6.23%-12.14%
Change in YoY Net Profit Growth (%)0.00%-34.87%8.34%34.69%24.96%5.00%-39.77%42.13%-29.72%-17.09%-18.37%

Muthoot Finance 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:13%
3 Years:6%
TTM:24%
Compounded Profit Growth
10 Years:18%
5 Years:15%
3 Years:3%
TTM:17%
Stock Price CAGR
10 Years:26%
5 Years:23%
3 Years:7%
1 Year:42%
Return on Equity
10 Years:21%
5 Years:22%
3 Years:19%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:01 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital372372398399399400401401401401401401401
Reserves3,3643,8934,6865,2206,1177,4129,39211,17114,83817,94320,66023,88925,282
Borrowings24,08119,47819,43618,56720,98521,16726,83337,13045,94649,81149,73458,78372,343
Other Liabilities1,6001,8522,2502,8623,2111,8131,4431,7582,2802,3991,8241,9552,491
Total Liabilities29,41625,59426,76927,04930,71330,79238,06950,46063,46570,55572,62085,028100,518
Fixed Assets289313257218208200193228247267272350352
CWIP141479106232938466788101
Investments823538982093959831,4381,5901,3201,3172,2682,698
Other Assets29,03125,23226,46726,72330,28630,19136,87148,76561,58968,92170,96482,32297,366
Total Assets29,41625,59426,76927,04930,71330,79238,06950,46063,46570,55572,62085,028100,518

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-3,9525,726-460214-1,710-87-3,858-4,458-7,477-1,142-1,902-9,302
Cash from Investing Activity +-33-3-16-67-134-194-585-42948408188-739
Cash from Financing Activity +4,795-5,107254-1,2042,457-5545,7018,6789,0412,796-1,0368,649
Net Cash Flow809617-222-1,058613-8341,2583,7911,6122,062-2,750-1,392

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow813.00-23.00-18.00-18.00-17.00-19.00-20.00-25.00-36.00-44.00-48.00-47.00

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 %30%20%14%15%19%25%22%28%28%24%18%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters73.37%73.37%73.37%73.37%73.35%73.35%73.35%73.35%73.35%73.35%73.35%73.35%
FIIs14.16%13.67%12.13%10.96%9.93%10.00%9.37%8.70%8.12%8.34%8.33%8.68%
DIIs8.26%8.48%9.67%10.48%11.76%12.02%12.66%13.73%14.64%14.61%14.72%14.55%
Public4.20%4.48%4.83%5.20%4.96%4.62%4.61%4.21%3.87%3.72%3.59%3.41%
No. of Shareholders2,02,1282,26,0442,42,2162,59,9112,91,6462,66,2172,72,1482,46,5972,17,2332,03,2841,94,9511,82,990

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Focused Equity Fund15,300,0007.392267.311,879,0262024-11-20714.25%
SBI Equity Hybrid Fund9,000,0002.171333.711,879,0262024-11-20378.97%
SBI Multicap Fund3,300,0003.54489.031,879,0262024-11-2075.62%
SBI Large & Midcap Fund2,647,6012.28392.351,879,0262024-11-2040.9%
ICICI Prudential India Opportunities Fund2,279,5662.45337.811,879,0262024-11-2021.32%
ICICI Prudential Balanced Advantage Fund2,073,4290.59307.261,879,0262024-11-2010.35%
ICICI Prudential Multi Asset Fund1,933,0351.03286.461,879,0262024-11-202.87%
ICICI Prudential Banking and Financial Services1,879,0263.97278.451,879,0262024-11-200%
SBI Flexi Cap Fund1,819,5681.45269.641,879,0262024-11-20-3.16%
ICICI Prudential Value Discovery Fund1,739,1540.73257.731,879,0262024-11-20-7.44%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)107.7289.99100.1094.8478.30
Diluted EPS (Rs.)107.7189.98100.0594.7678.20
Cash EPS (Rs.)113.5893.36102.1996.8780.49
Book Value[Excl.RevalReserv]/Share (Rs.)641.51551.82476.84392.82299.26
Book Value[Incl.RevalReserv]/Share (Rs.)641.51551.82476.84392.82299.26
Revenue From Operations / Share (Rs.)375.17296.37303.60287.41241.47
PBDIT / Share (Rs.)286.92229.42242.59231.78186.83
PBIT / Share (Rs.)284.62227.47240.84230.10185.35
PBT / Share (Rs.)149.37122.63134.80127.90106.23
Net Profit / Share (Rs.)111.2891.41100.4495.1979.01
NP After MI And SOA / Share (Rs.)107.7189.98100.0894.8378.25
PBDIT Margin (%)76.4777.4179.9080.6477.36
PBIT Margin (%)75.8676.7579.3280.0576.75
PBT Margin (%)39.8141.3744.4044.5043.99
Net Profit Margin (%)29.6630.8433.0833.1132.72
NP After MI And SOA Margin (%)28.7130.3632.9632.9932.40
Return on Networth / Equity (%)17.2216.6721.3824.4226.52
Return on Capital Employeed (%)43.4224.1128.8729.1931.70
Return On Assets (%)4.484.505.265.545.71
Long Term Debt / Equity (X)0.000.700.720.980.92
Total Debt / Equity (X)2.722.572.903.243.46
Asset Turnover Ratio (%)0.170.140.150.170.18
Current Ratio (X)1.361.881.771.841.73
Quick Ratio (X)1.361.881.771.841.73
Dividend Payout Ratio (NP) (%)20.4222.2219.970.0034.48
Dividend Payout Ratio (CP) (%)19.9921.7519.630.0033.85
Earning Retention Ratio (%)79.5877.7880.030.0065.52
Cash Earning Retention Ratio (%)80.0178.2580.370.0066.15
Interest Coverage Ratio (X)2.122.192.292.272.36
Interest Coverage Ratio (Post Tax) (X)1.821.871.951.932.00
Enterprise Value (Cr.)121977.9187557.3897948.6590952.4459504.10
EV / Net Operating Revenue (X)8.107.368.047.896.14
EV / EBITDA (X)10.599.5110.069.787.94
MarketCap / Net Operating Revenue (X)3.943.304.384.202.53
Retention Ratios (%)79.5777.7780.020.0065.51
Price / BV (X)2.361.812.843.112.07
Price / Net Operating Revenue (X)3.943.304.384.202.53
EarningsYield0.070.090.070.070.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Muthoot Finance Ltd as of November 21, 2024 is: 1,995.46

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 21, 2024, Muthoot Finance Ltd is Undervalued by 5.25% compared to the current share price 1,896.00

Intrinsic Value of Muthoot Finance Ltd as of November 21, 2024 is: 2,099.61

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 21, 2024, Muthoot Finance Ltd is Undervalued by 10.74% compared to the current share price 1,896.00

Last 5 Year EPS CAGR: 5.22%

*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 Finance Ltd:
    1. Net Profit Margin: 29.66%
      • 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: 43.42% (Industry Average ROCE: 15.02%)
      • 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%: 17.22% (Industry Average ROE: 15.79%)
      • 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): 1.82
      • 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: 1.36
      • 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: 17.2 (Industry average Stock P/E: 59.52)
      • 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: 2.72
      • 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 Finance Ltd. is a Public Limited Listed company incorporated on 14/03/1997 and has its registered office in the State of Kerala, India. Company’s Corporate Identification Number(CIN) is L65910KL1997PLC011300 and registration number is 011300. Currently Company is involved in the business activities of Other financial service activities, except insurance and pension funding activities. Company’s Total Operating Revenue is Rs. 11082.32 Cr. and Equity Capital is Rs. 401.35 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Non-Banking Financial Company (NBFC)Muthoot Chambers, 2nd Floor, Opposite Saritha Theatre Complex, Kochi Kerala 682018investorrelations@muthootfinance.com
http://www.muthootfinance.com
Management
NamePosition Held
Mr. George Jacob MuthootChairman & Wholetime Director
Mr. George Alexander MuthootManaging Director
Mr. George Thomas MuthootWhole Time Director
Mr. Alexander GeorgeWhole Time Director
Mr. George AlexanderWhole Time Director
Mr. George Muthoot JacobWhole Time Director
Mr. George Muthoot GeorgeWhole Time Director
Mr. Chamacheril Mohan AbrahamIndependent Director
Mr. Ravindra PisharodyIndependent Director
Mrs. Usha SunnyIndependent Director
Mr. Vadakkekara Anthony GeorgeIndependent Director
Mr. Jose MathewIndependent Director
Mr. Abraham ChackoIndependent Director
Mr. Joseph KorahIndependent Director

FAQ

What is the latest intrinsic value of Muthoot Finance Ltd?

The latest intrinsic value of Muthoot Finance Ltd as on 21 November 2024 is ₹1995.46, which is 5.25% higher than the current market price of ₹1,896.00.

What is the Market Cap of Muthoot Finance Ltd?

The Market Cap of Muthoot Finance Ltd is 76,136 Cr..

What is the current Stock Price of Muthoot Finance Ltd as on 21 November 2024?

The current stock price of Muthoot Finance Ltd as on 21 November 2024 is ₹1,896.

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

In FY 2024, the High / Low of Muthoot Finance Ltd stocks is 2,079/1,262.

What is the Stock P/E of Muthoot Finance Ltd?

The Stock P/E of Muthoot Finance Ltd is 17.2.

What is the Book Value of Muthoot Finance Ltd?

The Book Value of Muthoot Finance Ltd is 640.

What is the Dividend Yield of Muthoot Finance Ltd?

The Dividend Yield of Muthoot Finance Ltd is 1.27 %.

What is the ROCE of Muthoot Finance Ltd?

The ROCE of Muthoot Finance Ltd is 13.2 %.

What is the ROE of Muthoot Finance Ltd?

The ROE of Muthoot Finance Ltd is 17.9 %.

What is the Face Value of Muthoot Finance Ltd?

The Face Value of Muthoot Finance 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 Finance 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