Muthoot Finance Limited is a well-known financial services company that offers different types of credit facilities in India.
The market capitalisation of Muthoot Finance, as of August 13, 2018, stood at Rs.16,533.78.
Company’s Wealth and Recent Performance
- For the financial year 2017-18, the company reported a net profit of Rs.1,720.27 crore, which was an increase by 46% when compared to the previous year, during which, the profit was Rs.1,179.83 crore.
- For the quarter ended March 31, 2018, the net profit was recorded to be Rs.451.39 crore. With this, there was a 40.30% upswing in the net standalone profit.
- The total income earned for the financial year 2017-18 was Rs.6,185.27 crore, which is higher than last year’s Rs.5.728.63 crore. Apart from this, the consolidated loan book showed an incline of 12% on a year-on-year basis, standing at Rs.32,154 crore.
- For the quarter ended March 31, 2018, Muthoot managed to acquire as many as 1,400,000 equity shares for Rs.10 each. The debt-to-equity ratio was recorded to stand at Rs.2.74 for this period.
Muthoot Finance Stock Trends in 2018
- On January 1, 2018, the stock opened at the National Stock Exchange (NSE) at the price of Rs.474.90. On the 3rd, the price came down to Rs.460 and even as Non-Banking Financial Company (NBFC) stocks saw a growth, prices took a downward trend over the course of the month. On the last day of the month, the price was Rs.422.
- On February 1, 2018, the cost per share was Rs.414 and the price went down by the end of the first week but picked up in the second week. On the 8th, the rate stood at Rs.407.50 but fell to Rs.373 by the 23rd. The month closed at Rs.385.20.
- On March 1, 2018, the cost per share was Rs.392 and slumped to Rs.382.50 on the 9th. By the 19th, the cost of a Muthoot share was Rs.200, a fall, influenced by market developments.
- In April, the price of the share surged at Rs.432.90 on the 6th, as the group announced its plans to raise up to Rs.3,000 crore through non-convertible redeemable debentures. By the 16th, share prices peaked at 430.95. With favourable conditions prevailing, the price stood at Rs.451.70 on the 30th.
- On May 22, 2018, the price of the share was Rs.398.95, a fall possibly due to unfavourable market conditions. The following month, the price fell to Rs.384.75 and prices kept fluctuating through the course of the month.
- On July 10, 2018, the cost of a Muthoot share was Rs.413.05 as the company announced an acquisition. The price trends went a bit low over the course of the next month.
- On August 1, 2018, the price per share was recorded at Rs.404.55 and the price went up, reaching Rs.420 by the 9th.
Muthoot Finance Stock Trends in 2016 and 2017
- On January 3, 2017, the price of a Muthoot share was recorded at Rs.285 and by the 27th, the price tiptoed, reaching Rs.354.45.
- There were not many price changes recorded in February 2017 but by March, the stock prices inclined, reaching Rs.376.80 on the 30th.
- On April 3, 2017, the stock price was reported to be Rs.370 and by the 21st, the cost of the share sky-rocketed to Rs.417.10 as the group announced the payment of interest.
- Though May was a slow month, the price went up exponentially in June, reaching Rs.474.95 on the 15th.
- The first two weeks of July 2017 were pretty slow but prices picked up gradually and reached Rs.475.95 on the 17th.
- On August 8, 2017, the price of a share was observed to be Rs.480. However, the price fell to Rs.455.15 by the 10th.
- On September 13, 2017, a record-high price of Rs.523.20 was observed as Nifty midcap indexes hit a new high.
- On December 1, 2017, the rate of a share was reported to be Rs.449 and after two weeks, the cost per share came down to Rs.430 due to a Sensex fall.
- On January 1, 2016, the cost of a single Muthoot share was Rs.180.30, inclining exponentially on February 1, to Rs.193.45. By the 25th of February, the cost of the share went down to Rs.181.
- In March, the price trends did not seem very promising. On the first day of the month, the share price was recorded at Rs.175.85 and there were not many major fluctuations that were observed.
- On April 28, 2016, the price rose to Rs.210.40. The following month, the prices were quite steady and on May 30, the rate was Rs.225.
- On June 9, 2016, the price reached Rs.275.85 and by the 30th, the price increased to Rs.290.50 yet again.
- On August 9, 2016, the price was recorded at Rs.402, after Q1 results were announced. The prices were steady during the course of the next month.
- On October 10, 2016, the price dropped to Rs.339.40 but steadily picked up over the next few days, reaching Rs.369 by the 25th.
- The prices hit a downward trend in November 2016. On December 1, the price was recorded at Rs.305.40 but fell to Rs.268.20 by the 20th. The year closed at the price of Rs.282.
Should you invest in Muthoot Finance?
- As per the Brand Trust Report (2016, 2017 and 2018), Muthoot Finance has been recognised as ‘India’s No.1 – Most Trusted Financial Services Brand’. Thus, making it a promising stock to put your money in.
- Muthoot has also been recognised as one among the ‘largest’ gold financing companies in the country, specifically for its loan portfolio, as per research reports. In fact, as many as 2 lakh people take loans from the company each day.
- It is a company that has seen consistent growth over the course of the years. They distribute loans in a fast manner with very minimal documentation and apart from this, the gold on which the loan is taken is also stored and kept in safe custody.
- The company has gone on to strengthen its position as one of the most ‘trusted and preferred’ in the market for gold loans. Their portfolio also grew in other non-gold segments such as insurance, micro-finance and home finance.
- Apart from other factors, the company has one of the highest credit ratings. It is also one among the first NBFCs to be a part of the ‘Rs.1,000 crore net profit club’.
- Keeping all the above-listed parameters in mind, make a decision to buy the stock after personal research.
Muthoot Finance Limited is an Indian credit company that primarily offers gold loans to people across various segments of society. They have a comprehensive ‘financial inclusion policy’ and their gold loan rates start at a humble rate of Rs.1,500. The company provides both business and personal loans by using gold as a collateral deposit. It is a 131-year-old company with a customer base of a little over 6 million. It has a huge network of branches – as many as 4,500, that is situated in as many as 23 states and 6 Union Territories. The company mainly caters to those who hold gold jewellery but find it hard to get access to a formal loan.
History of the Company
The company was founded in 1939 by the visionary leader Shri M George Muthoot, who anticipated the prospects of the gold loan in a country like India. Mr. Muthoot laid the foundation of this business under the aegis of the trading business that was set up by his father Ninan Mathai Muthoot in 1887. By 2001, the company got its first license from the RBI to operate as a Non-Banking Financial Company (NBFC). By 2007, they had as many as 500 branches.
Management of the Company
M.G. George Muthoot – Chairman
He became a part of the family business in 1979 and began his tenure as the Chairman in 1993. George is a mechanical engineer and has attended Harvard Business School, where he took up management courses. He has received the prestigious ‘AIMS Emerging Business Leader of the Year Award’, which was conferred by Shri Rajnath Singh, Minister of Home Affairs. He has been a recipient of many such awards. At present, he is the Chairman of the Kerala State Council and a National Executive Committee Member at the FICCI.
George Alexander Muthoot – Managing Director
A chartered accountant with a graduate degree in commerce, Alexander has a deep-rooted knowledge in the gold loan sector. He was the recipient of the Times of India Business Excellence Award in 2009. At present, he holds the position of Vice Chairman at the Kerala Non-banking Finance Companies Welfare Association.
George Jacob Muthoot – Joint Managing Director
George Jacob Muthoot has helped develop the brand name of the group and create a wide network in India. He has a degree in civil engineering from the Manipal University. He is a member of the Rotary Club, Trivandrum Management Association, and Confederation of Real Estate Developers Association of India (Trivandrum).
George Thomas Muthoot – Joint Managing Director
With over 3 decades of experience in banking, financial services, and business operations, George Thomas Muthoot has played a crucial role in the development and growth of the group. He is currently a lifetime member at YMCA and also a Rotary International member.
Muthoot Finance Listings in NSE, BSE, and Indices
Muthoot Finance equity shares are available for trading on the National Stock Exchange of India Limited and the Bombay Stock Exchange. The respective codes for the same have been mentioned below.
NSE Code: MUTHOOTFINEQ
BSE Code: 533398
Sector: Finance -Investments
Coming to the stock market indices, the company comprises the following:
- Nifty 200
- Nifty 500
- Nifty Dividend Opportunities 50
- Nifty Full Midcap 100
- Nifty LargeMidcap 250
- Nifty Midcap 100
- Nifty Midcap 150
- Nifty Midcap 50
- Nifty MidSmallcap 400
- S&P BSE 150 MidCap Index
- S&P BSE 200
- S&P BSE 250 LargeMidCap Index
- S&P BSE 400 MidSmallCap Index
- S&P BSE 500
- S&P BSE AllCap
- S&P BSE Dollex - 200
- S&P BSE Finance
- S&P BSE LargeMidCap
- S&P BSE MidCap
- S&P BSE MidSmallCap
Muthoot Finance Limited
2nd Floor, Muthoot Chambers,
Opposite Saritha Theatre Complex,
Kochi – 682018,
Phone: 91 – 484 – 2396 – 478 / 239 - 4712
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