Muthoot Finance ke Stock main kya Karaien with CA Rakesh Singhal
About the Company
Muthoot Finance Limited (MFL) is the flagship company of the Kerala-based business house, The Muthoot Group, which has diversified operations in financial services, healthcare, real estate, education, hospitality, power generation and entertainment. MFL was incorporated in 1997 and is India’s largest gold loan focussed NBFC with total loan assets (standalone) of Rs. 50,391 crore and 4,632 branches as on December 31, 2020.
The company derives a major proportion of its business from South India (49% of the total portfolio as on December 31, 2020), where gold loans have traditionally been accepted as a means of availing short-term credit, although MFL has increased its presence beyond South India over the past few years.
MFL achieved a standalone net profit of Rs. 3,018 crore on an asset base of Rs.50,460 crore in FY2020 against a net profit of Rs. 1,972 crore on an asset base of Rs. 38,069 crore in FY2019. In H1FY21, the company witnessed standalone net profit of Rs. 1,735 crore.
The consolidated portfolio stood at Rs. 52,286 crore as on September 30, 2020 compared to Rs. 46,871 crore as on March 31, 2020 (Rs. 38,304 crore as on March 31, 2019), of which gold, housing and microfinance accounted for 89%, 4% and 5%, respectively.
Established franchise and market leadership in gold loan segment – MFL has a track record of around two decades in the gold loan business and is India’s largest gold loan focused non-banking financial company (NBFC) with a total portfolio of Rs. 47,016 crore (of which 98% is gold loan) as on September 30, 2020 and Rs. 41,296 crore as on June 30, 2020 (Rs. 41,611 crore as on March 31, 2020 and Rs. 34,246 crore as on March 31, 2019).
The consolidated portfolio stood at Rs. 52,286 crore as on September 30, 2020 compared to Rs. 46,501 crore as on June 30, 2020 and Rs. 46,871 crore as on March 31, 2020 (Rs. 38,304 crore as on March 31, 2019), of which gold, housing and microfinance accounted for 89%, 4% and 5%, respectively.
The company operates through an extensive pan-India branch network of 4,607 as on September 30, 2020 with 60% of its branches being in South India, where it has a good franchise. The strong brand value of Muthoot, its experienced promoters and senior management team, and its efficient internal controls and audit systems are expected to support its overall business growth going forward.
The company had a growth of 22% in gold loan portfolio for 9M FY21 and it expects to end the year with ~25% growth as against the previous year’s growth of 22%.
It did not undergo any restructuring during the quarter. The collection efficiency for Home Finance, Micro-Finance and Vehicle Finance stood at 88%, 98% and 83.8%, respectively.
The loan to value ratio in the month of December, 2020, was 67% including accrued interest and 65% excluding accrued interest.
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