Muthoot Capital Services Ltd. >> Warren Buffett Analysis

Let us quickly analyze Muthoot Capital Services Ltd. against Warren Buffett’s 9 Criteria of Value Investing

History of Consistently Increasing Sales, Earnings & Cash Flow image
Durable Competitive Advantage image
Future Growth Drivers image
Conservative Debt (long term debt < 3 Net Profit) image
Return on Equity must be Above Average image
Low CAPEX required to maintain current operations image
Management is holding / buying the stock image
Price is Under Valued (< intrinsic value) image
Stock Price is consolidating image

Positive Factors

Sales increased 50% for last 3 years

Net Profit increased 50% for last 3 years

Promoters Holding is 75%

Neutral Factors

Company is in the Automobile Loan Sector

Negative Factors

Low Interest Coverage Ratio

Competitors are more in the loan market

Future crunch in GDP figures should increase bad loans


Overall the stock provides a multi-bagger properties, one can invest for a 5-10 year perspective for 30% compounded growth in EPS & there by Stock Price

By Futurecaps Chief Analyst

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