Muthoot Finance

Stock Opportunities
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Muthoot fin to enter vehicles lending business…

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confident of passing the increase in interest rates to the customer.
asset liability mismatch at a comfortable level.
looking to have 15 % of portfolio from other loans by the end of this fiscal.
source of funding is mostly banks

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ANy views on Muthoot Q2 FY19 results ?

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How come Muthoot announced results so late, on the 6th of December! I thought the limit was 45 days or 60 days from the end of the quarter!

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An interesting thread here. Recommending Muthoot from gold price movement and rupee depreciation perspectiveWhy investing in Muthoot Finance is a refined way of playing in gold..

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Q4 19

14% increase in net profit to Rs2103cr in 2018-19 as against Rs1844cr in the previous year
increased its loan portfolio by 31% at Rs1908cr for FY19 as against Rs1459cr in the previous year

Belstar Investment and Finance Private Limited, a micro finance NBFC and Subsidiary Company where Muthoot Finance holds 70.01% stake, grew its loan portfolio to Rs1842cr as against last year of Rs1138cr, a yoy increase of 62%. It achieved a profit after tax of Rs73cr in FY19 as against previous year profit after tax of Rs27cr.

Muthoot Insurance Brokers Pvt Limited, insurance products and a wholly owned subsidiary company generated a total premium collection amounting to Rs268cr in FY19 as against Rs169cr in the previous year. It generated a Profit after Tax of Rs15cr in FY19 as against Rs11cr in the previous year.

standalone AUM growth of 18%
subsidiaries achieved yoy loan growth of 51%, contributing 12% of Group Loan assets

https://www.indiainfoline.com/article/news-top-story/muthoot-finance’s-q4fy19-net-profit-up-14-119051300374_1.html

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Isn’t this a red flag, that they were not considering secondary NPA as part of their NPA? How could have the Auditors/RBI missed this?

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Saw a youtube video (in malayalam) which tells that muthoot has been denying loans due to some reason (I am not sure about the authenticity of the source)

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https://www.newsclick.in/Victimisation-Media-Trial-Struggle-Muthoot-Finance-Employees

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These political leaders makes business in Kerala, Impossible. Hope these guys never come back to power!

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Please do not make blank statements, visit Bihar and see how easy it is to do business. Politicians will be politicians, including our pradhan-sevak

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A few updates on management’s step towards issuing global medium term notes in both foreign currency & rupee denominated foreign debt of upto $ 2 Bn:

  1. https://www.bseindia.com/xml-data/corpfiling/AttachLive/12ecaa6b-f0e9-4cc4-8ec8-876bc75a68f4.pdf
  2. https://www.bseindia.com/xml-data/corpfiling/AttachLive/02d49ba7-eee6-471a-8174-775c431b8392.pdf
  3. https://www.bseindia.com/xml-data/corpfiling/AttachLive/7a1022d6-cf69-4aa3-8505-752185edcf40.pdf

They have received ratings from all 3 global credit rating agencies. The respective reports are below:

  1. FITCH.pdf (81.8 KB)
  2. Research_ Rating Action_ Moody’s assigns first-time Ba2 CFR to Muthoot Finance - Moody’s.pdf (109.4 KB)
  3. Standard & Poor’s _ Americas.pdf (107.5 KB)

These are publicly available documents.

Disc.: Not Invested.

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Strike in Kerala is also over now

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Not sure, how it will pan out. AMC business needs an extremely strong management and good distribution network

Muthoot has already opened multiple fronts , Housing/MFI/Vehicle/MSME and loan book is yet to be matured

Are they biting too much ? Time will tell…

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The investment amount of Rs. 215 Cr is too small to make a dent in valuations. I see it more like an option purchased by management. If it works out, it could be worth a significant sum and if it doesn’t they will lose their token investment.

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As per 18 -19 AR return on avg loans is given as 6.31% and interest yield as 21.63%.Any idea how these ratios differ???.

Is the yield higher than 21% sustainable.

Can anyone give an idea on the rates they charge on jewel loans as the bulk of the portfolio is concentrated on jewel loans.

Diversification can be justified for entering home loan business but the yield will be much lower in comparison with their overall yield and higher risk too.why HL finance then?
I am pretty convinced abt the possibility of topline growth but the current yields make me confused.
Bought tracking quantity .trying to get myself more convinced before adding up

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