Muthoot Microfin Reaches All-Time Low Amidst Ongoing Market Volatility

Muthoot Microfin, a small-cap player in the finance and non-banking financial company (NBFC) sector, has experienced significant volatility recently, reaching an all-time low on March 12, 2025. The stock is currently trading just 0.52% above its 52-week low of Rs 123.6. Today, Muthoot Microfin underperformed the sector, declining by 1.40%, compared to a slight drop of 0.13% in the Sensex.
Over the past four days, the stock has seen a consecutive decline, totaling a 7.79% drop. Its performance metrics reveal a concerning trend, with the stock trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. In the last year, Muthoot Microfin has faced a staggering 42.19% decline, significantly underperforming the broader market, which saw a minimal negative return of 0.02%.

Despite these challenges, Muthoot Microfin maintains strong long-term fundamentals, with an average return on equity (ROE) of 16.12% and impressive growth in net sales and operating profit. The company also boasts a healthy institutional holding of 28.24%, indicating a level of confidence from larger investors.