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Muthoot Finance Ltd
NSE:MUTHOOTFIN

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Muthoot Finance Ltd
NSE:MUTHOOTFIN
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Price: 3 483.7 INR -0.35% Market Closed
Market Cap: ₹1.4T

P/OCF

-3.9
Current
11%
Cheaper
vs 3-y average of -4.5

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
-3.9
=
Market Cap
₹1.4T
/
Operating Cash Flow
₹-353.1B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
-3.9
=
Market Cap
₹1.4T
/
Operating Cash Flow
₹-353.1B

Valuation Scenarios

Muthoot Finance Ltd is trading above its industry average

If P/OCF returns to its Industry Average (33.8), the stock would be worth ₹-29 814.78 (956% downside from current price).

Statistics
Positive Scenarios
0/2
Maximum Downside
-956%
Maximum Upside
No Upside Scenarios
Average Downside
819%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple -3.9 ₹3 483.7
0%
Industry Average 33.8 ₹-29 814.78
-956%
Country Average 23 ₹-20 266.13
-682%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
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Market Distribution

Lower than 100% of companies in India
Percentile
0th
Based on 2 204 companies
0th percentile
-3.9
Low
0.5 — 14
Typical Range
14 — 39.7
High
39.7 —
Distribution Statistics
India
Min 0.5
30th Percentile 14
Median 23
70th Percentile 39.7
Max 28 676

Muthoot Finance Ltd
Glance View

Muthoot Finance Ltd. is a prominent player in India's financial sector, operating as the largest gold financing company in the country. The firm traces its origins back to 1939, rooted in the southern state of Kerala, known for its entrepreneurial zeal and cultural richness. Beginning as a small trading business by M. George Muthoot, it gradually metamorphosed into a financial powerhouse. At the heart of Muthoot Finance's business is the age-old practice of utilizing gold loans as a financial lifeline. In a nation where gold is both a symbol of wealth and an economic fallback, Muthoot provides a simple yet powerful service: advancing loans against the family’s gold ornaments. This has turned into a reliable financial instrument for millions who require immediate capital to meet their personal or business needs. The company operates through an extensive network of branches across the Indian subcontinent, making finance easily accessible to its widespread clientele. Its business model capitalizes on a low-risk avenue where the pledged gold acts as an effective collateral, significantly reducing the risk of default. Muthoot Finance earns its revenue through the interest levied on these loans. These interest rates are calculated based on the duration and value of the gold pledged. Moreover, due to the emotional and financial significance of gold, the default rates are low, ensuring the stability of cash flow and profits. This gold loan business forms the crux of Muthoot Finance's success, providing pivotal liquidity to India’s largely underbanked population while bolstering the company’s place in the financial realm.

MUTHOOTFIN Intrinsic Value
3 374.84 INR
Overvaluation 3%
Intrinsic Value
Price ₹3 483.7
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