Stock Performance and Market Context
On 5 January 2026, Muthoot Finance Ltd’s shares surged to Rs.3897, marking a fresh peak in its trading history. This price level represents a remarkable increase from its 52-week low of Rs.1964.35, reflecting a one-year gain of 73.25%. In comparison, the benchmark Sensex has recorded a more modest rise of 8.27% over the same period. The stock outperformed its sector by 1.13% on the day, further highlighting its relative strength.
The broader market opened lower, with the Sensex starting at 85,640.05, down 121.96 points (-0.14%), but it has since recovered to trade near 85,764.13. The Sensex remains just 0.46% shy of its own 52-week high of 86,159.02, supported by bullish technical indicators such as trading above its 50-day moving average, which itself is positioned above the 200-day moving average. Small-cap stocks are also leading gains, with the BSE Small Cap index up by 0.08%.
Technical Strength and Moving Averages
Muthoot Finance’s share price is trading comfortably above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning signals sustained buying interest and a strong upward trend. The stock’s ability to maintain levels above these averages is often interpreted as a sign of healthy momentum and investor confidence in the company’s fundamentals.
Our latest monthly pick, this Large Cap from Aluminium & Aluminium Products, is outperforming the market! See the analysis that helped our Investment Committee select this winner.
- - Market-beating performance
- - Committee-backed winner
- - Aluminium & Aluminium Products standout
Financial Performance Driving the Rally
The rally in Muthoot Finance’s stock price is underpinned by strong financial results and consistent growth metrics. The company has reported positive results for ten consecutive quarters, demonstrating sustained operational strength. In the quarter ended September 2025, Muthoot Finance posted a Profit Before Tax excluding Other Income (PBT LESS OI) of Rs.3,194.40 crore, reflecting an impressive growth rate of 80.15% year-on-year.
Net sales for the same quarter reached a record high of Rs.7,282.79 crore, while Profit Before Depreciation, Interest and Taxes (PBDIT) also hit an all-time quarterly peak of Rs.5,803.23 crore. These figures highlight the company’s ability to expand its revenue base and improve profitability simultaneously.
Strong Fundamentals and Market Recognition
Muthoot Finance’s long-term fundamentals remain robust, with an average Return on Equity (ROE) of 20.04%, signalling efficient capital utilisation. The company’s operating profit has grown at an annualised rate of 17.44%, supporting its steady expansion. Additionally, net profit growth of 82.53% in the recent quarter further cements its position as a high-growth NBFC.
Institutional investors hold a significant 22.95% stake in the company, reflecting confidence from entities with extensive analytical resources. The stock is also highly rated by MarketsMojo, boasting a Mojo Score of 90.0 and a Mojo Grade of Strong Buy, upgraded from Buy on 11 August 2025. It ranks second among 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.
Valuation and Risk Considerations
While the stock’s strong performance is evident, it trades at a premium valuation with a Price to Book Value of 4.7, which is higher than the average for its peer group. The company’s ROE of 22.3% supports this premium, but investors should note the elevated valuation multiples. The Price/Earnings to Growth (PEG) ratio stands at 0.4, indicating that earnings growth is outpacing the valuation increase, a factor often viewed positively in growth stocks.
Muthoot Finance Ltd caught your attention? Explore our comprehensive research report with in-depth analysis of this mid-cap Non Banking Financial Company (NBFC) stock – fundamentals, valuations, financials, and technical outlook!
- - Comprehensive research report
- - In-depth mid-cap analysis
- - Valuation assessment included
Consistent Outperformance Over Time
Muthoot Finance has demonstrated consistent returns over the last three years, outperforming the BSE500 index in each annual period. The stock’s 73.25% return in the past year is a testament to its sustained growth trajectory and resilience in a competitive NBFC sector. This performance is particularly notable given the broader market’s more modest gains and the Sensex’s recent three-week consecutive rise of 0.98%.
The company’s market capitalisation grade is 2, reflecting its mid-cap status, and it continues to maintain a strong position within its sector. The combination of solid financial results, favourable technical indicators, and institutional backing has contributed to the stock’s upward momentum and the achievement of this new 52-week high.
Summary
Muthoot Finance Ltd’s attainment of a new 52-week high at Rs.3897 marks a significant milestone in its market journey. Supported by strong quarterly results, consistent profitability, and robust fundamentals, the stock has outpaced both its sector and the broader market indices. Trading above all key moving averages and maintaining a high Mojo Score with a recent upgrade to Strong Buy, the company continues to demonstrate resilience and growth in the NBFC space. While valuation metrics indicate a premium, the company’s earnings growth and institutional support underpin its current market standing.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →
