Muthoot Capital Services Stock Research

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Muthoot Capital Services Detail

Muthoot Capital Services is in portfolio of Dolly Khanna. He is one of the top investors in India. The company belongs to Finance sector.

As per the Company website it is one of India’s Most Progressive Automobile Finance Companies. It is promoted by the Muthoot Pappachan Group is a Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India

Below are different product categories from the Company

  • Two Wheeler Loan
  • Used Car Loan
  • Fixed Deposit
  • Secured Business Loans
  • Loyalty Loans
  • Subordinated Debts

It is mainly a vehicle finance Company (more specially two wheeler loan segment). As of now Company is present in 20 states and have more than 7 lakhs Customers.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Muthoot Capital Services Stock Performance

The stock gave more than 250 times return if you take absolute prices in above long term price chart. The best part is stock has given steady growth and price performance over the years. Most of the years it has given positive return except for Global Crisis and year 2011 after wards.

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If we leave these two time periods of non performance and consolidation it has been a steady performer or compounder for investors over the years.Recently stock has corrected significantly after good run till year 2018.

Muthoot Capital Services My Opinion

Muthoot Capital Services is a Financial Company. It is mainly two wheeler financing Company. Apart from that it has also stated used vehicle financing.

The niche focus of Company is good but also restricts growth. It will be slow growth trajectory for the Company and is dependent on two wheeler sales number mostly. Two wheeler sales is less risky a business as you have the vehicle as security. The loan amount is less and repayment chances increase. There is no significant risk of defaulting on these loans.

Instead of financing new cars it is financing used cars as price is less but challenge is to value the car perfectly. If the car is not valued correctly then Company has chances of making a loss.

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There are many companies in Finance sector. Finance is core sector of any Economy and people should have allocation to this sector in their portfolio. I have already invested in this sector and am planning to continue with those stocks as of now. I am not tracking this Company.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.


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