There is a bit of a contradiction in your statements. Even Muthoot is impacted by the change in the market dynamics. If you look at it for a 2x increase in AUM the profits has increased only 1.4x . With increased competition Muthoot has reduced the pricing and hence its profitability has also decreased. The only point is Muthoot may not be bothered about the valuation. Muthoot is playing a long game, sustainably growing and being there, waiting for its time.
Manappuram may be in for a valuation game as at some point the promoters may want to cash in. This could be the reason for allowing Bain to enter ..scale up.. increase the valuation … sell off