Please refer to important disclosures at the end of this report
Muthoot Finance (MFL) Limited is a gold financing company. The Company is a
non-banking financial company (NBFC), which is engaged in providing loan
(financing) against collateral of gold jewellery. MFL’s management believes that
the government’s demonetisation scheme will result in the unorganised
segment’s gold loans shifting towards the organised segment which the compan
seems to be benefited. With the worst-case scenario behind, regulator
environment turning favourable and gold prices stable, the management is
targeting healthy growth going forward. The management expects the cost-to-
AUM ratio to ease to 4.0% over the medium term also the management has
given NIM guidance of 10.5%-11.0% going forward. All the 3 subsidiaries o
MFL have shown healthy performance and growing at an exponential pace. The
company has been maintaining a healthy dividend payout of 30.99% (Div. yield:
2.10%). The company has reported a healthy return on equity (RoE) of 20%+ fo
the last 3 years. Hence Buy.
CMP `308
Stock Info
Beta 0.8
Bloomberg Code
Shareholding Pattern (%)
Promoters 74.6
MF / Banks / Indian Fls 8.0
FII / NRIs / OCBs 15.6
Indian Public / Others 1.9
Abs. (%) 3m 1yr 3yr
Sensex (5.4) 1.0 26.9
Muthoot Finance (8.7) 72.6 185.0
Reuters Code MUTT.BO
BSE Sensex 26,394
Nifty 8,142
Face Value (
Market Cap (
cr) 12,305
52 Week High / Low 405/170
Avg. Daily Volume 73,274
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Muthoot Finance
Others | Finance
November 30, 2016
Muthoot Finance | Finance
November 30, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement Muthoot Finance
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
: Reduce
-5% to -15%
< -15