Financial Services · NSE/BSE: MUTHOOTFIN

Muthoot Finance Limited

Credit Services
Market Cap ₹1.27L Cr
Verdict: Exceptional

Quality Scores

Multi-Bagger
89/100
Compounder Quality
93/100
Management Credibility
95/100
Governance
92/100
Cash Flow Quality
75/100

AI Summary

Muthoot Finance is India's preeminent gold loan NBFC, managing over 200 tons of gold jewelry and a massive branch network. The company has demonstrated exceptional longevity with a 10-year profit CAGR of 29% and a median sales growth of 19.7%. Operating with a capital-efficient model focused on a high-liquidity collateral (gold), it maintains superior net interest margins even during interest rate volatility. The promoter holding remains rock-solid at 73.35%, reflecting high skin in the game. Current market positioning and recent entry into insurance intermediation suggest a strategic shift…

Top Opportunities

  • India's largest gold financing company by AUM
  • Exceptional 10-year PAT CAGR of 29%
  • Current ROE of 30.9% is significantly above peers

Top Risks

  • Negative free cash flow across the last 10 fiscal years
  • High sensitivity to gold price volatility
  • Intensifying competition from banks in the gold loan segment

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