Why has the group been silent?
The Muthoot capital has seen quite a value destruction and despite all the tailwinds, and good promoters they are not able to make it a solid franchisee.
I was going through the annual report and I have two questions:
- Why has the business in FY21-22 reduced to 397 crore from 504 crores when the Auto sector has started bouncing back.
- While their interest expense is down to 150 crore yet there expenses have increased from 186 crore to 476 crore
- What is this other expense which has increased by 102%. Is it a one-time thing or what’s happening over here?
Let’s discuss this stock and see if it’s a value trap or a great opportunity to be tapped.