Why is Muthoot Microfin falling/rising?

Jul 09 2025 10:51 PM IST
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As of 09-Jul, Muthoot Microfin Ltd's stock price is Rs 160.65, up 5.59% today, but it has faced significant challenges with an 18.47% decline in net sales and negative results over the last three quarters, leading to a year-to-date drop of 7.83% and a one-year decline of 35.42%. Despite strong long-term fundamentals, recent volatility and falling investor participation indicate caution among investors.
As of 09-Jul, Muthoot Microfin Ltd's stock price is currently at Rs 160.65, reflecting an increase of Rs 8.5 or 5.59%. The stock has shown a strong performance today, outperforming its sector by 5.21% and has been on a consecutive gain for the last two days, rising 6.14% during this period. Over the past week, the stock has gained 12.66%, while its one-month return stands at 19.35%. However, the company has faced significant challenges, including a decline in net sales of 18.47% and negative results for the last three consecutive quarters, which have contributed to a year-to-date decline of 7.83% and a one-year drop of 35.42%. Despite having strong long-term fundamental strength with a 45.40% CAGR growth in net sales and high institutional holdings at 27.79%, the stock's recent performance has been adversely affected by its negative financial results.

In the broader market context, Muthoot Microfin's short-term performance has significantly outpaced the benchmark, with a 1-week return of 12.66% compared to the Sensex's mere 0.15%. However, over the past year, the stock has underperformed the market, which has generated a return of 3.96% while Muthoot Microfin has declined by 35.42%. This stark contrast highlights the stock's volatility and the impact of its recent financial struggles, despite some positive short-term movements. The falling investor participation, indicated by a 67.18% drop in delivery volume, further suggests caution among investors, which may influence future price movements.
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