Today’s stock to be analyzed is Muthoot Finance Ltd. – India
Muthoot Finance Ltd. is the largest gold financing company in India in terms of the loan portfolio. The company is a “Systemically Important Non-deposit taking NBFC” headquartered in the southern Indian state of Kerala. It provides personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all.
Muthoot Finance Ltd was incorporated in 1997 and is a gold loan focussed NBFC with total loan assets (standalone) of Rs. 34,246 crore and 4,480 branches as of March 31, 2019. The company derives a major proportion of its business from South India (49% of the total portfolio as of March 31, 2019), where gold loans have traditionally been accepted as a means of availing short-term credit, although Muthoot Finance has increased its presence beyond South India over the past few years.
For detailed analysis, check out the following post.