Muthoot Capital Services Ltd – Multibagger Analysis

Muthoot Capital Services Ltd – Multibagger 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 Flowimage
Durable Competitive Advantageimage
Future Growth Driversimage
Conservative Debt (long term debt < 3 Net Profit)image
Return on Equity must be Above Averageimage
Low CAPEX required to maintain current operationsimage
Management is holding / buying the stockimage
Price is Under Valued (< intrinsic value)image
Stock Price is consolidatingimage

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

About Futurecaps

Futurecaps is a 12+ year experienced Indian Stock Market Advisory with SEBI Registration.

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