Risk factor
Low price volatility
Profitability factor
Undervalued vs peers
About
Muthoot Finance Limited, an Indian financial institution, primarily specializes in providing loans secured by gold jewelry. These "gold loans" cater to both individual customers and microfinance entities for personal and business needs. Beyond its core gold lending activities, the company offers a diverse portfolio of financial products and services, including housing finance, sales of gold coins, money transfer facilities, and foreign exchange operations. It also provides investment opportunities through mutual funds and non-convertible debentures, alongside a comprehensive suite of insurance products covering health, home, vehicle, life, and travel. Furthermore, Muthoot Finance extends various other loan types, such as vehicle, corporate, and SME financing. Intriguingly, the company also generates electricity from windmills located in Tamil Nadu. As of March 31, 2022, its extensive operational network comprised approximately 4,617 branches spread across 23 states and 6 Union Territories. The company, which has its roots tracing back to 1887, is headquartered in Kochi, India.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is reasonably priced on P/E, undervalued on P/RIB
Target Price
The average target price of MUTHOOTFIN.NS is 3766 and suggests 44.9% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendatio