Muthoot Finance Ltd

About

Muthoot Finance is engaged in the business of diversified interests in the fields of Financial Services, Healthcare, Real Estate, Plantations, Foreign Exchange, Information Technology, Education, Insurance Distribution, Hospitality etc.

Key Points

Fast growth period (FY07-FY13)
Due to rapid increase in gold prices, Muthoot grew their branch network >7.4x in a period of 6-years, from 551 branches in FY07 to 4,082 in FY13. During this period, AUM grew at >62% CAGR reaching 26,000 Cr. in FY13 from 1,420 Cr. in FY07. Gold tonnage increased to 134 ton in FY13 from 23 ton in FY07.

As a result, RBI removed priority sector status for gold financiers in March 2012 and further reduced loan to value ratio to 60% for NBFCs vs 85% for banks. This was later normalized to the previous limit in September 2013.

See full details
  • Market Cap 62,309 Cr.
  • Current Price 1,553
  • High / Low 1,639 / 1,090
  • Stock P/E 15.9
  • Book Value 392
  • Dividend Yield 1.29 %
  • ROCE 15.6 %
  • ROE 27.8 %
  • Face Value 10.0

Pros

  • Company has delivered good profit growth of 36.12% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 26.96%
  • Company has been maintaining a healthy dividend payout of 21.13%

Cons

Peer comparison

Sector: Finance Industry: Finance & Investments

Loading peers table ...

Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
1,818 1,904 2,085 2,068 2,397 2,588 2,630 2,604 2,821 3,001 3,104 2,956
412 390 540 464 511 616 624 469 536 600 662 553
Operating Profit 1,406 1,514 1,545 1,604 1,886 1,973 2,006 2,135 2,285 2,401 2,442 2,403
OPM % 77% 80% 74% 78% 79% 76% 76% 82% 81% 80% 79% 81%
Other Income 3 2 4 4 9 7 3 2 3 16 14 8
Interest 610 667 689 732 766 810 864 972 1,028 1,049 1,051 1,086
Depreciation 12 13 15 12 13 16 17 14 16 17 20 15
Profit before tax 787 835 845 864 1,116 1,153 1,128 1,151 1,244 1,351 1,385 1,310
Tax % 35% 38% 35% 35% 19% 25% 26% 26% 25% 25% 26% 25%
Net Profit 509 514 542 556 900 853 829 854 926 1,005 1,020 978
EPS in Rs 12.72 12.83 13.52 13.88 22.45 21.27 20.68 21.28 23.08 25.05 25.42 24.37

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
4,336 4,936 5,935 6,714 7,594 9,684 11,531 11,882
1,110 1,268 1,554 1,656 1,747 2,207 2,255 2,351
Operating Profit 3,226 3,668 4,381 5,058 5,848 7,477 9,276 9,531
OPM % 74% 74% 74% 75% 77% 77% 80% 80%
Other Income 1 5 3 67 6 22 32 41
Interest 2,114 2,288 2,374 2,132 2,543 3,180 4,109 4,213
Depreciation 84 59 52 52 52 59 67 69
Profit before tax 1,029 1,327 1,959 2,942 3,260 4,260 5,131 5,290
Tax % 35% 38% 38% 37% 35% 26% 26%
Net Profit 671 814 1,200 1,830 2,078 3,138 3,804 3,929
EPS in Rs 16.86 20.41 30.03 45.74 51.86 78.25 94.83 97.92
Dividend Payout % 36% 29% 20% 22% 23% 19% 21%
Compounded Sales Growth
10 Years:%
5 Years:18%
3 Years:20%
TTM:16%
Compounded Profit Growth
10 Years:%
5 Years:36%
3 Years:28%
TTM:14%
Stock Price CAGR
10 Years:25%
5 Years:35%
3 Years:57%
1 Year:31%
Return on Equity
10 Years:%
5 Years:26%
3 Years:27%
Last Year:28%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Jun 2021
398 399 399 400 401 401 401 401
Reserves 4,686 5,223 6,139 7,457 9,531 11,428 15,174 15,326
Borrowings 19,621 18,854 22,177 23,891 30,128 40,952 50,414 51,786
2,292 2,918 3,469 1,925 1,675 2,085 2,638 2,589
Total Liabilities 26,996 27,395 32,184 33,672 41,734 54,867 68,627 70,102
269 235 257 251 259 314 327 322
CWIP 7 11 10 6 23 29 39 39
Investments 20 49 97 177 211 630 809 783
26,700 27,100 31,820 33,237 41,241 53,894 67,453 68,958
Total Assets 26,996 27,395 32,184 33,672 41,734 54,867 68,627 70,102

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
-479 108 -2,186 -1,432 -4,824 -4,970 -7,814
21 -43 -177 -126 -162 -385 37
249 -1,102 3,027 824 6,351 9,193 9,712
Net Cash Flow -209 -1,036 664 -734 1,364 3,838 1,935

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 97 109 79 1 1 0 0
Inventory Days
Days Payable
Cash Conversion Cycle 97 109 79 1 1 0 0
Working Capital Days 1,992 1,800 1,633 -91 -60 -46 -59
ROCE % 15% 16% 17% 16% 16% 16%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
73.51 73.49 73.49 73.48 73.44 73.43 73.43 73.40 73.40 73.40 73.40 73.37
11.00 12.35 13.90 15.03 14.50 14.37 14.56 13.92 15.11 15.99 15.02 14.16
10.99 9.83 8.35 7.52 7.84 7.09 7.34 7.71 6.99 6.60 7.72 8.26
0.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
4.40 4.33 4.26 3.96 4.22 5.12 4.68 4.97 4.50 4.02 3.86 4.20

Documents