Stock Performance and Market Position
The stock’s rise to Rs.3897 represents a significant milestone, reflecting a 1.33% gain on the day, outperforming the Sensex which declined by 0.16%. Over the past week, Muthoot Finance advanced by 4.03%, compared to the Sensex’s 1.10% gain, while its one-month performance stood at 2.17%, surpassing the Sensex’s slight decline of 0.10%. The stock’s momentum is further highlighted by its three-month surge of 22.50%, markedly higher than the Sensex’s 5.44% increase.
Longer-term returns have been particularly impressive, with a one-year gain of 73.83% against the Sensex’s 8.08%, and a three-year return of 258.83% compared to the Sensex’s 41.87%. Over five years, the stock has appreciated by 200.55%, significantly outpacing the Sensex’s 76.77%. The decade-long performance is even more striking, with a staggering 2090.05% increase versus the Sensex’s 234.73%.
Intraday volatility has been notable, with a weighted average price volatility of 55.63%, indicating active trading and investor engagement. The stock currently trades above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling strong technical momentum.
Financial Strength and Growth Metrics
Muthoot Finance’s financial fundamentals underpin its market success. The company boasts a strong long-term Return on Equity (ROE) averaging 20.04%, with the latest quarterly ROE at 22.3%. Operating profit has grown at an annualised rate of 17.44%, reflecting consistent operational efficiency and expansion.
The company’s latest quarterly results, declared in September 2025, were outstanding. Net profit surged by 82.53%, while Profit Before Tax excluding Other Income (PBT LESS OI) reached Rs.3,194.40 crores, growing at 80.15%. Net sales hit a record Rs.7,282.79 crores, and Profit Before Depreciation, Interest and Tax (PBDIT) reached an all-time high of Rs.5,803.23 crores. These figures highlight the company’s ability to generate strong earnings growth alongside expanding revenue streams.
Muthoot Finance has reported positive results for ten consecutive quarters, demonstrating sustained profitability and operational consistency. Institutional investors hold a significant 22.95% stake, reflecting confidence from entities with extensive analytical resources.
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Market Ranking and Quality Scores
Muthoot Finance is rated highly by MarketsMojo, with a Mojo Score of 90.0 and a current Mojo Grade of Strong Buy, upgraded from Buy on 11 Aug 2025. The company ranks second among all Mid Cap stocks and second across the entire market universe of over 4,000 stocks, placing it in the top 1% of companies rated by MarketsMojo.
The company’s market capitalisation grade stands at 2, reflecting its strong position within its sector and market segment. Its consistent returns over the last three years, including outperforming the BSE500 index annually, further reinforce its quality credentials.
Valuation and Risk Considerations
Despite its strong fundamentals and market performance, Muthoot Finance trades at a premium valuation. Its Price to Book Value ratio is 4.7, higher than the average for its peers, indicating an expensive valuation relative to historical norms. The company’s Price/Earnings to Growth (PEG) ratio is 0.4, reflecting the relationship between its price, earnings growth, and valuation.
While the stock has delivered a 73.83% return over the past year, net profits have increased by 56.1% during the same period, suggesting that the market has priced in strong growth expectations. Investors should note these valuation metrics when analysing the stock’s current price levels.
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Summary of the Journey to the All-Time High
Muthoot Finance’s journey to its record price of Rs.3897 is marked by consistent earnings growth, strong operational metrics, and sustained investor confidence. The company’s ability to deliver positive results for ten consecutive quarters, coupled with robust sales and profit growth, has propelled the stock well above its historical levels.
Its performance relative to the broader market indices and sector peers highlights its resilience and leadership within the NBFC sector. The stock’s outperformance of the Sensex and BSE500 indices over multiple time frames underscores its appeal as a high-quality growth stock.
Trading above all major moving averages and maintaining high institutional ownership further attest to the stock’s strong market positioning and investor trust.
Conclusion
The attainment of an all-time high price by Muthoot Finance Ltd is a testament to its solid financial foundation, consistent growth, and market leadership. While valuation metrics suggest a premium pricing, the company’s strong fundamentals and sustained performance provide a clear context for this milestone. This achievement reflects the culmination of years of steady progress and operational excellence within the NBFC sector.
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