Muthoot Finance Ltd., incorporated in 1997, is a large-cap company (with a market capitalization of Rs 44,461.03 crore) operating in the NBFC sector.
Key product / revenue segments of Muthoot Finance Ltd. include interest, income from the sale of shares and securities, service expenses, sale of services and dividends for the year ended March 31, 2021.
For the quarter ended 31-03-2022, the company recorded consolidated total revenue of Rs 3,041.14 million, -4.01% lower than total last quarter revenue of Rs 3,168.09 crore. of rupees and -2.50% over last year. Total quarterly income of Rs 3,118.98. Crore. The company reported a net profit after tax of Rs 1,006.22 crore during the last quarter.
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Justification of the investment
The broker maintains the BUY rating of the shares with a revised target price of 1,509 rupees (previously: 1,819 rupees) based on 2.5x (3 times before) P / B at the carrying amount of fiscal year 24E for business and 1.0 times for other businesses to underline the inherent low cost of credit and high RoE nature of the business, further enhanced by high operational efficiency, industry leadership and track record of execution. Muthoot. A consolidated RoA / RoE of 4.8% / 18.7% on 23E and 5.4% / 19.9% on 24E are expected, respectively. The multiple cut is the result of cloudy outlooks on yields and growth.
Promoter / FII Holdings
The promoters had a 73.37% stake in the company as of March 31, 2022, while the IFIs owned 12.13% and DIIs 9.68%.
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