- Net income for Muthoot Finance in Q4 reached 10.6 billion rupees, a 17% increase year-over-year, surpassing the estimate of 10.38 billion rupees.
- Revenue rose to 34.1 billion rupees, a 20% increase year-over-year, significantly beating the estimate of 20.19 billion rupees.
- Total costs amounted to 19.9 billion rupees, which is a 21% increase year-over-year.
- The finance cost for the quarter was 12.2 billion rupees, up by 30% year-over-year, yet below the estimate of 13 billion rupees.
- Other income decreased by 8.5% year-over-year to 94.9 million rupees.
- Despite strong financials, Muthoot Finance shares dropped 3.7% to 1,674 rupees, with 449,890 shares traded.
- Analyst recommendations currently include 16 buys, 2 holds, and 4 sells.
A look at Muthoot Finance Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Muthoot Finance Ltd. is a gold financing company that offers personal and business loans secured by gold jewelry, catering primarily to individuals in need of financial assistance but lacking access to formal credit channels. The company has received strong Smart Scores across various categories, with a perfect score of 5 for Dividend, indicating a solid track record of distributing profits to its shareholders. Its Momentum score of 4 suggests a positive trend in its stock performance, while Value and Growth scores of 3 each highlight decent potential in terms of valuation and expansion. However, the company scored a 2 in Resilience, indicating some vulnerability to market fluctuations.
Looking ahead, the long-term outlook for Muthoot Finance appears promising, especially in terms of dividend payouts and stock momentum. With a strong focus on providing gold loans to underserved individuals, the company’s growth potential remains steady, albeit with certain risks based on its resilience score. Investors may find Muthoot Finance an attractive option for income generation through dividends and potential stock price appreciation, leveraging the company’s expertise in the specialized field of gold financing.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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