Muthoot Finance - In Top Gear: Prabhudas Lilladher
A Muthoot Finance branch in Bengaluru, Karnataka. (Source: BloombergQuint)

Muthoot Finance - In Top Gear: Prabhudas Lilladher

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Prabhudas Lilladher Report

We are optimistic on Muthoot Finance Ltd. and have revised our estimates higher for net interest income by 10% and earnings per share by 6% for FY23.

We expect rich return profile (6.3-6.5%: return on asset, 22-23%: return on equity) over FY22-23 led by:

  1. The recent long term ratings upgrade resulting into reduction in cost of funds (we factor 40 basis points reduction in FY22).

  2. Healthy 18% assets under management compound annual growth rate, steady customer accretion (sustainable 5%YoY growth).

  3. Superior asset quality (less than 1.5% gross non performing asset, auctions at less than 0.5%).

Click on the attachment to read the full report:

Prabhudas Lilladher Muthoot Finance Company Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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