Stock Performance and Market Comparison
The stock’s latest peak at Rs.3994.75 represents a significant achievement, with the share price outperforming its sector by 0.7% on the day. Over the past two trading sessions, Muthoot Finance has recorded consecutive gains, delivering a cumulative return of 3.46%. The stock’s 1-day gain of 0.96% contrasts favourably with the Sensex’s decline of 0.31%, while its 1-week performance of 4.20% notably exceeds the Sensex’s 0.59% rise.
Over longer periods, the stock’s outperformance is even more pronounced. In the last three months, Muthoot Finance surged by 22.72%, compared to the Sensex’s 4.14% increase. The 1-year return stands at an impressive 81.12%, dwarfing the Sensex’s 9.25% gain. Over three years, the stock has delivered a remarkable 270.35% return, significantly outpacing the Sensex’s 42.19%. Even over a decade, the company’s share price has appreciated by 2133.56%, compared to the Sensex’s 235.25% rise.
Technical indicators further reinforce the stock’s strength, with Muthoot Finance trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained upward momentum.
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Financial Strength and Consistent Growth
Muthoot Finance’s ascent to this record price is supported by its strong long-term fundamentals. The company has maintained an average Return on Equity (ROE) of 20.04%, reflecting efficient capital utilisation. Operating profit has grown at an annual rate of 17.44%, signalling healthy business expansion.
The company’s recent 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 Rs.5,803.23 crores, the highest recorded to date.
These results mark the tenth consecutive quarter of positive earnings, underscoring the company’s consistent financial performance. Institutional investors hold 22.95% of the stock, indicating strong confidence from entities with significant analytical resources.
Market Recognition and Ratings
Muthoot Finance is among the top 1% of companies rated by MarketsMojo across a universe of over 4,000 stocks. It holds the number one rank both in the Mid Cap category and across the entire market. The company’s Mojo Score stands at an impressive 90.0, with a recent upgrade from a Buy to a Strong Buy rating on 11 August 2025, reflecting improved outlook based on fundamental and technical analysis.
Valuation and Risk Considerations
Despite its strong performance, the stock trades at a premium valuation. With a Price to Book Value of 4.8 and an ROE of 22.3%, the company’s valuation is higher than its peers’ historical averages. The Price/Earnings to Growth (PEG) ratio is 0.4, indicating that the stock’s price growth has outpaced profit growth over the past year, where profits increased by 56.1% compared to the 81.12% rise in share price.
These valuation metrics suggest that while the company’s fundamentals remain robust, the stock commands a premium in the market.
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Long-Term Returns and Market Position
Over the last three years, Muthoot Finance has consistently outperformed the BSE500 index in each annual period, generating returns of 81.12% in the last year alone. Its five-year return of 209.25% also surpasses the Sensex’s 76.80% gain, highlighting the company’s sustained ability to deliver value to shareholders.
The company’s market capitalisation grade is 2, reflecting its mid-cap status within the Non Banking Financial Company sector. Its steady climb to an all-time high price is a testament to its operational strength and market resilience.
Summary
Muthoot Finance Ltd’s achievement of a new all-time high at Rs.3994.75 is a significant milestone that reflects its strong financial health, consistent earnings growth, and favourable market positioning. The stock’s outperformance relative to the Sensex and its sector, combined with robust fundamentals and institutional backing, underscores the company’s established presence in the NBFC sector. While valuation metrics indicate a premium, the company’s track record of delivering consistent returns over multiple time horizons remains noteworthy.
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