Muthoot Finance Stock Price Analysis and Quick Research Report. Is Muthoot Finance an attractive stock to invest in?

Around 2% of India's total population invests in financial assets. The mutual fund industry's penetration in India is close to 7% (Based on the number of PAN cardholders). This under penetration offers a huge opportunity for the industry to grow.

Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry.

Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

Muthoot Finance stock price today is Rs 2598.7. To understand the functions of the Muthoot Finance better, you must go through the following points:

Key Financials –

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of Muthoot Finance is Rs 4049.665 Cr and the compounded growth of profit in the past 3 years is 2.85068728837947 %. The PAT margin of Muthoot Finance is 32.0511 %.

• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Muthoot Finance , the EPS grew by 16.5822 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): Muthoot Finance has a average ROE track record. The ROE of Muthoot Finance is at 17.86 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Muthoot Finance is worth at the current levels at Rs 2598.7. The stock is trading at a current P/E ratio of 14.6536 and the average historical P/E for the last 5 years was 12.1188123503354.

• P/B ratio can be one of the best metrics to value such companies. Currently, Muthoot Finance is trading at a P/B of 3.6705 . The average historical P/B of Muthoot Finance for the last 5 years was 2.50393038945782. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

• Share Price: - The current share price of Muthoot Finance is Rs 2598.7. One can use valuation calculators of ticker to know if Muthoot Finance share price is undervalued or overvalued.