Muthoot Finance Ltd (MUTHOOTFIN) AI Stock Analysis

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Muthoot Finance Ltd

(NSE:MUTHOOTFIN)

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Rating:65.5Neutral

Price Target:INR 2,596.00▲(7.74% Upside)

Action:reiterated

Date:08/17/26

The score is supported primarily by strong profitability and accelerating 2026 growth, plus an attractive low P/E valuation. These positives are tempered by higher financial risk from rising leverage and historically inconsistent cash-flow generation, and by weak technical momentum with the stock trading below key moving averages.

Positive Factors

Accelerating Revenue and Profit GrowthStrong recent revenue growth combined with expanding net margins indicates improving operating performance and customer demand. If maintained, this combination can strengthen internal capital generation, support continued balance-sheet expansion, and provide a durable earnings base over the next several quarters.

Negative Factors

Rising Financial LeverageIncreasing leverage makes the company more sensitive to funding conditions, interest costs, and credit-cycle stress. Although returns on equity are improving, the larger debt burden reduces financial flexibility and could constrain growth or shareholder returns if borrowing costs rise or asset quality weakens.

Muthoot Finance Ltd (MUTHOOTFIN) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 966.98B
Dividend Yield: 1.24%
Average Volume (3M): 64.79K
Price to Earnings (P/E): 8.5
Beta (1Y): 0.90
Revenue Growth: 50.37%
EPS Growth: 84.79%
Country: India
Employees: 31,617
Sector: General
Sector Strength: 55
Industry: Financial - Credit Services

Muthoot Finance Ltd Business Overview & Revenue Model

Company Description

Muthoot Finance Limited, an Indian financial institution, primarily specializes in providing loans secured by gold jewelry. These "gold loans" cater to both individual customers and microfinance entities for personal and business needs. Beyond its co...

How the Company Makes Money

Muthoot Finance primarily makes money by originating and servicing gold loans and earning interest income on these advances. Customers pledge gold jewellery as collateral, the company disburses a loan against the assessed value of the gold, and it ea...

Muthoot Finance Ltd Financial Statement Overview

Summary

Strong income statement (revenue +26.9% YoY in 2026 and net margin ~33.9%), but offset by elevated and rising leverage (debt-to-equity ~3.86x) and historically volatile cash flows (multi-year negative operating/free cash flow before a sharp 2026 rebound).

Income Statement

86Very Positive

Balance Sheet

63Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	335.58B	312.63B	202.65B	150.86B	119.19B	122.17B
Gross Profit	213.43B	199.89B	128.53B	96.56B	77.10B	79.61B
EBITDA	155.82B	144.42B	73.82B	60.89B	50.01B	54.80B
Net Income	113.73B	105.90B	53.33B	43.24B	36.12B	40.17B
Balance Sheet
Total Assets	2.09T	1.96T	1.33T	964.69B	801.49B	763.16B
Cash, Cash Equivalents and Short-Term Investments	147.98B	128.68B	83.46B	62.72B	80.74B	100.36B
Total Debt	1.62T	1.51T	988.05B	678.72B	554.72B	543.62B
Total Liabilities	1.68T	1.56T	1.03T	707.15B	579.96B	571.79B
Stockholders Equity	406.02B	391.30B	293.67B	251.07B	216.66B	187.86B
Cash Flow
Free Cash Flow	-201.54B	117.63B	-265.93B	-139.76B	-29.45B	-16.94B
Operating Cash Flow	-201.01B	119.15B	-263.76B	-137.54B	-28.04B	-15.96B
Investing Cash Flow	-25.05B	-567.76B	-13.76B	453.59M	1.81B	4.22B
Financing Cash Flow	223.47B	493.20B	298.93B	119.58B	3.95B	34.45B

Muthoot Finance Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price2409.50

Price Trends

50DMA2761.72Negative

100DMA2887.44Negative

200DMA3184.31Negative

Market Momentum

MACD-99.56Positive

RSI33.64Neutral

STOCH36.86Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MUTHOOTFIN, the sentiment is Negative. The current price of 2409.50 is below the 20-day moving average (MA) of 2547.08, below the 50-day MA of 2761.72, and below the 200-day MA of 3184.31, indicating a bearish trend. The MACD of -99.56 indicates Positive momentum. The RSI at 33.64 is Neutral, neither overbought nor oversold. The STOCH value of 36.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MUTHOOTFIN.

Muthoot Finance Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:MUTHOOTFIN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SHRIRAMFIN	82Outperform	INR 1.94T	13.71	―	1.51%	10.10%	14.42%
IN:LTF	72Outperform	INR 612.82B	17.89	―	1.12%	17.30%	26.39%
IN:BAJFINANCE	69Neutral	INR 5.85T	26.92	―	0.64%	18.79%	18.22%
IN:IIFL	66Neutral	INR 225.36B	9.01	―	0.76%	36.50%	190.08%
IN:MUTHOOTFIN	66Neutral	INR 967.34B	8.50	―	1.24%	50.37%	84.79%
IN:MANAPPURAM	56Neutral	INR 271.47B	17.58	―	0.87%	4.91%	73.95%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:MUTHOOTFIN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:MUTHOOTFIN	Muthoot Finance Ltd	2409.50	-753.90	-23.83%
IN:BAJFINANCE	Bajaj Finance Limited	939.20	-97.33	-9.39%
IN:IIFL	IIFL Finance Limited	528.00	-8.23	-1.54%
IN:LTF	L&T Finance Ltd	244.50	-32.40	-11.70%
IN:MANAPPURAM	Manappuram Finance Limited	289.00	23.23	8.74%
IN:SHRIRAMFIN	Shriram Finance Limited	825.00	43.88	5.62%

Muthoot Finance Ltd Corporate Events

Muthoot Finance Holds 29th AGM Via Video Conferencing in Line With SEBI Norms

Aug 31, 2026

Muthoot Finance Limited held its 29th Annual General Meeting on August 31, 2026, via video conferencing and other audio-visual means in line with Ministry of Corporate Affairs and SEBI directions. Around 80 shareholders, including promoters, joined r...

Muthoot Finance Uploads Analyst Call Recording on Quarterly Results

Aug 2, 2026

Muthoot Finance Ltd has disclosed that the audio recording of its analyst call held on August 1, 2026, discussing unaudited consolidated and standalone financial results for the quarter ended June 30, 2026, has been made available on the company&#821...

Muthoot Finance Unveils Long-Planned Leadership Succession With New MD

Aug 1, 2026

Muthoot Finance’s board has announced a leadership succession plan, recommending the appointment of Whole-Time Director Alexander George as Managing Director from October 1, 2026, subject to shareholder approval at the upcoming AGM. The move is...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

Muthoot Finance Ltd AI Stock Analysis

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