Is Muthoot Cap.Serv overvalued or undervalued?

Oct 11 2025 08:06 AM IST
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As of October 10, 2025, Muthoot Capital Services is considered fairly valued with a PE ratio of 14.88 and an attractive valuation compared to peers, despite a year-to-date return of -17.95% relative to the Sensex.
As of 10 October 2025, the valuation grade for Muthoot Capital Services has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The company is currently considered fairly valued. Key ratios include a PE ratio of 14.88, an EV to EBIT of 10.10, and a Price to Book Value of 0.68, which suggest that the stock is reasonably priced compared to its earnings and asset value.

In comparison to peers, Muthoot Capital Services has a lower PE ratio than Bajaj Finance, which stands at 36.56, and is also more attractive than Life Insurance, which has a PE of 11.65. The PEG ratio for Muthoot is notably low at 0.00, indicating potential undervaluation in terms of growth expectations. Despite recent underperformance relative to the Sensex, with a year-to-date return of -17.95% compared to the Sensex's 5.58%, the company’s valuation metrics suggest it may still hold value for investors looking for opportunities in the NBFC sector.
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Our weekly and monthly stock recommendations are here
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