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IndiaPulse

Muthoot Finance Limited (MUTHOOTFIN)

Large Cap

Financial Services stocks · Large cap · NSE

Muthoot Finance is India's largest gold loan NBFC, recognized as an Upper Layer NBFC by RBI. With roots tracing to 1887, it has been uniquely focused on gold-secured lending since 1939. It operates 4,968 pan-India branches, serving 6.41 Mn active customers, with 95% of its loan book secured by gold and 47% NBFC gold loan market share.

₹2,913.8
-12.70 · -0.43%
Quote04 Sept, 03:58 pm IST
Fundamentals05 Sept 2026 · screener
Score05 Sept, 10:20 pm IST · v4.3-runtime-valuation
Tags03 May 2026
Coverage10/10 · 100%
Valuation2026-07-20 · Rf 6.8% · Financial Services P/E 18.5 (n=240)
Data confidence
Fresh enough for analysis
Investor decision lenses

One read, four checks

75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.

Investable fundamentals, management trust needs verification, price trend argues for patience, and recent execution is consistent.

Suggested next step
Research, do not rush
The four lenses are not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
UNDERVALUED
67

Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.

Trust
Mixed Trust
57

low confidence · 0/0 claims checked

Technical
Bearish
26

Timing lens: price trend and sector relative strength.

Result consistency
consistent
87

Rolling lens: recent quarterly delivery, not the latest single-result score.

Latest result

Quarter ended 30 Jun 2026

Excellent · 75/100

Rev +34% YoY · PAT +43% YoY · operating leverage

Filed 01 Aug 2026
Open results browser →
MetricThis quarterYoYQoQ
Revenue₹8,672 Cr+34.5%-6.6%
EBITDANDFNDFNDF
Operating marginNDFNDFNDF
PAT₹2,825 Cr+43.1%-16.8%
PAT margin32.6%+198 bps-399 bps

NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.

Business & thesis

Growth engines, tailwinds/headwinds, and risk radar from management commentary

Business and thesis

Where growth can come from, and what can break the case

Thesis intactReviewed 2026-06-13T07:38:56.472Z
Management commentary snapshot

Muthoot Finance reported robust FY26 results with consolidated AUM up 49% YoY to ₹1.82 Tn and PAT surging 98% YoY to ₹10,607 Cr. Standalone AUM grew 50% YoY to ₹1.63 Tn, and PAT increased 95% YoY to ₹10,134 Cr, driven by strong gold loan demand and improved operational efficiency.

The company delivered strong financial performance in FY26, with significant AUM and PAT growth. Asset quality improved YoY, and profitability ratios like NIM and ROE expanded. Management's focus on digital integration and market formalization positions it well, though QoQ asset quality trends warrant monitoring.

Current business mix

Standalone Loan AUM by Region (FY26)

Latest issuer-disclosed distribution across 4 reported categories.

Businessmix
South49.0%
West22.0%
North19.0%
East10.0%
Growth engines

New Customer Gold Loan Disbursements

₹29,347 Cr disbursed to 1.77 Mn new customers in FY26, a 34% YoY growth.

Digital Adoption for Top-ups

71% of gold loan top-ups initiated via iMuthoot App, up 65% YoY.

Digital Adoption for Repayments

42% of gold loan interest repayments via iMuthoot App, up 137% YoY.

Pan-India Expansion

Changing perceptions and rising awareness are driving demand in North, East, and West regions.

Capacity and execution

Muthoot Homefin (India) Ltd. Branches

Increased to 175 branches in FY26 from 163 in FY25.

Asia Asset Finance PLC Branches

Increased to 115 branches in FY26 from 100 in FY25.

Belstar Microfinance Ltd. Branches

Increased to 1,312 branches in FY26 from 1,281 in FY25.

Tailwinds

Regulatory Support

Regulator provided the industry with a clearer foundation for growth.

Organised Market Growth

Organised gold loan market projected to grow 33-36% YoY to ₹16 Lakh Cr in FY26.

Shift to Formal Lending

Borrowers are shifting from local moneylenders to organised lenders for safety, transparency, and fairer rates.

Gold Loans for Working Capital

Micro-enterprises increasingly use gold loans for inventory, expansion, and routine working capital needs.

Risk radar

QoQ Deterioration in Stage III Assets

Standalone Stage III Loan Assets % increased to 2.35% in Mar-26 from 1.58% in Dec-25.

Increase in Bad Debts Written Off

Standalone Bad Debts Written Off as % of Loan Assets increased to 0.14% in FY26 from 0.10% in FY25.

Subsidiary Performance - Insurance Broking

Muthoot Insurance Brokers Pvt. Ltd. saw YoY decline in premium collection and profit after tax.

Subsidiary Performance - Microfinance

Belstar Microfinance Ltd. reported YoY decline in revenue and PAT, with increased Stage III Loan Assets %.

Management accountability

What management said, and what results must prove

Management accountability

What management said, and what results must prove

Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.

Analyst reading lens
Compare BOTH

YoY comparison is crucial for assessing annual growth and overall business cycle performance in the NBFC sector. QoQ comparison is vital for tracking sequential momentum, asset quality trends, and the immediate impact of operational strategies.

Sector KPIs management disclosed

Consolidated Loan AUM

₹1,81,916 Cr, up 49% YoY and 10% QoQ.

Standalone Loan AUM

₹1,62,826 Cr, up 50% YoY and 10% QoQ.

Consolidated Gold Loan AUM

₹1,65,030 Cr, up 54% YoY and 11% QoQ.

Standalone Profit After Tax

₹10,134 Cr, up 95% YoY and 16% QoQ.

Management forward view

Balanced Growth with Prudence

Chairman states that "for growth to last, it must be balanced with prudence."

Trust as Core Principle

Managing Director emphasizes, "Trust is what we lend against - and always have."

Gold Loan Formalization

Management views gold loan as a central part of India’s formalization journey.

Phygital Strategy

Physical branches remain foundational, but digital layers are integrated for seamless customer service.

Thesis monitor

Numbers and claims to verify in the next filings

CheckpointCurrent evidenceWhat to verify next
Standalone Gold Loan AUM Growth50% YoY, 10% QoQSustained double-digit QoQ growth and continued market share gains.
Standalone Stage III Loan Assets %2.35% (Mar-26)Reversal of QoQ increase and continued YoY improvement in asset quality.
Standalone Net Interest Margin (NIM)13.38% (Q4 FY26)Stability or further expansion of NIM amidst changing interest rate environment.
iMuthoot App User Engagement16.2 Mn transactions, 6 Mn registered usersContinued growth in digital transactions and active user base for efficiency gains.

Verification checkpoints are IndiaPulse research interpretation, not investment advice.

Technical timing lens

Trend score and candlestick chart

26Bearish

full bear SMA stack · MACD −

Stock trend: 26
Sector RS:

Technical chart

MUTHOOTFINdaily · 1Y · AUTO-11.9%
Latest close ₹2913.80 on 2026-09-04
Bar
-1.9%
RSI
44
MACD hist
-11.28
52W pos
16%
2026-09-04O ₹2971.00H ₹2979.90L ₹2913.00C ₹2913.80Vol 5.8L sh
₹2.62k₹2.90k₹3.17k₹3.45k₹3.73k52L2913.802026-032026-06VolRSIMACD2026-032026-042026-062026-072026-09
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal

Daily technical trend read

Bearish setup

Trend is weak — long-term trend down. RSI 44.

  • Price < SMA20 < SMA50 < SMA200 — full bearish stack.
  • SMA20 roughly flat — short-term momentum stalled.
  • RSI(14) at 44 — falling, no extreme reading.
  • MACD below signal, histogram expanding negatively — bearish momentum building.
  • 30% off 52W high · 9% above 52W low.

Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.

Nifty 500 leadership

Relative Strength & Trend Stage

40
RS percentile
Stage 4 Downtrend
1M return
+0.8%
3M return
-2.6%
6M return
-10.2%
1Y return
-2.5%
RS 1D
-4
RS 20D
+14
Sector rank
#9
Industry rank
#20
Stage evidence
  • Price is 10.0% below the 30-week proxy.
  • The 50-DMA is below the 30-week proxy and its slope is falling -3.4%.
  • Both 3-month and 6-month returns are negative.
50-DMA
price below
200-DMA
price below
Sector
neutral
Industry
neutral
Relative-strength line vs Nifty 500 (base 100)
264 observations
04 Sept 2026Value 111.63-0.44%
96112128144161Aug 25Dec 25Apr 26Sept 26112
RS vs Nifty 500112

Valuation & score drivers

U-Score 67 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor

67U-SCORE
Growth at Value

Fundamental score breakdown

UNDERVALUED
Valuation15/30
Growth20/25
Quality19/20
Balance Sheet5/15
Cash Flow6/10
Piotroski
3/9 (+1)
Penalties
1
Raw sum
67

Why this score?

Top U-Score contributors and drags from the latest stored fundamentals.

67/100 · UNDERVALUED

Positive drivers

  • Fair-value margin of safety is positive at 76.8%.
  • Quality contributes 19/20 to the score.
  • Growth contributes 20/25 to the score.

Main drags

  • Altman Z is 0.8, in distress territory.
  • Balance sheet is weaker at 5/15; verify the latest quarterly trend.
  • Valuation is weaker at 15/30; verify the latest quarterly trend.
Sector valuation model

NBFC valuation: P/B, ROA, borrowing cost, and asset quality

Lenders can look optically cheap before credit losses emerge, so valuation is tied to book quality.

NBFC P/B
Primary lens
P/B adjusted for ROA/ROE and leverage quality.
Secondary checks
AUM growth, spreads, credit cost, liquidity and ALM risk.
Main risk check
Fast growth with weak asset quality deserves a discount.
PE
10.3
PB
2.9
EV/EBITDA
2005.9
ROE
30.9%
ROCE
15.8%
FCF Yield
Debt/Equity
3.9
MoS
+76.8%
Score movement

Stored run vs live recompute

This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.

Stored run: 05 Sept 2026
v4.3-runtime-valuation
Final score
67
Previous: 67
Verdict
UNDERVALUED
Previous: UNDERVALUED
Margin of safety
+76.8%
Previous: +76.8%

Score history

12 stored score snapshots. Latest stored move: +7 points.

05 Sept 2026
v4.3-runtime-valuation
61
67
67
67
67
67
67
67
66
60
60
67

Factor attribution

No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.

Modelled fair value

Graham Number
₹2,538.49
-14.8% MoS
Justified P/B
12.40
Justified Value
₹12,536.4
+76.8% MoS
PEG
0.33

Trust score

Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth

Trust Score
57Mixed Trust · low confidenceTrust Lite

Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.

Mixed Trust: Claim history is still being built. It ranks around the 20th percentile of the scored universe and 35th percentile within Financial Services. Main check: balance sheet trust is weak at 22/100.

Mixed Trust Lite: Promoter holding is 73.4%. Key concern: Operating cash flow is negative at ₹-47393 Cr.

Computed 05 Sept 2026
management-trust-v1
104 docs text-extracted · 25 concalls text-extracted
Score band
Mixed Trust

Usable, but needs evidence. Treat guidance with a margin of safety.

Relative rank
20th percentile

overall median 67 · Financial Services: 35th pctile, median 62 · Large: 11th pctile, median 73

Evidence depth
Financial-only

104 documents have extracted text, but claim history is not strong enough yet.

Claim delivery
Outcome history still building

0 claims extracted · No contradicted claim yet

How to read this Trust Score

Mixed Trust · low confidence
What it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Needs extra due diligence; demand valuation comfort and recent improvement.

Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.

Forensic breakdown

Read low sub-scores as due-diligence warnings, not automatic sell signals.

Promoter
86
strong · holding, pledge, alignment
Cash flow
28
weak · profit to cash conversion
Balance sheet
22
weak · leverage and solvency
Discipline
76
strong · capital discipline
Results
87
strong · quarterly consistency

Trust positives

  • Promoter holding is 73.4%.
  • Promoter pledge is zero.
  • 4/4 latest quarters had positive YoY revenue growth.
  • 4/4 latest quarters had positive YoY PAT growth.

Trust risks

  • Operating cash flow is negative at ₹-47393 Cr.
  • Debt/equity is 3.88.
  • Altman Z is 0.80.
  • Only 1 years of positive FCF.

Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.

Financials

Full fundamentals table and 10-year revenue / profit / ROE history

Fundamentals

Valuation

P/E
10.30
P/B
2.88
EV/EBITDA
2005.87
Market Cap
116980.00Cr

Profitability

ROE
30.90%
ROCE
15.80%
ROA
5.85%
Dividend Y
1.03%

Growth (CAGR)

Revenue 5Y
22.00%
EPS 5Y
23.00%
Revenue 3Y
38.00%
EPS 3Y
43.00%

Balance Sheet

Debt/Equity
3.88
Interest Coverage
Altman Z
0.80
Book Value
1011.00

Cash Flow

FCF Yield
FCF Positive Y
1/5
OCF
-47393.00 Cr
EPS TTM
283.28

Shareholding

Promoter Hold
73.35%
Promoter Pledge
0.00%
Momentum 52W
16%

Financial History

Updated 5/9/2026

Revenue

₹ Cr
No data

Net Profit

₹ Cr
No data

Return on Equity

%
No data

Peers

Business-comparable names in Financial Services, ranked by similarity

Verify on:NSE India ↗
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.