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MUTHOOTFIN - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.9

Last Updated Time : 03 May 26, 11:24 am

Technical Rating: 3.9

Stock Code MUTHOOTFIN Market Cap 1,37,471 Cr. Current Price 3,424 ₹ High / Low 4,150 ₹
Stock P/E 16.1 Book Value 859 ₹ Dividend Yield 0.88 % ROCE 13.4 %
ROE 19.7 % Face Value 10.0 ₹ DMA 50 3,473 ₹ DMA 200 3,274 ₹
Chg in FII Hold 0.56 % Chg in DII Hold -0.70 % PAT Qtr 2,656 Cr. PAT Prev Qtr 2,345 Cr.
RSI 47.2 MACD 25.6 Volume 4,40,178 Avg Vol 1Wk 4,22,097
Low price 2,027 ₹ High price 4,150 ₹ PEG Ratio 1.68 Debt to equity 3.69
52w Index 65.8 % Qtr Profit Var 94.9 % EPS 213 ₹ Industry PE 18.2

📈 Chart & Trend: MUTHOOTFIN is trading slightly below its 50 DMA (3,473 ₹) but above its 200 DMA (3,274 ₹), indicating short-term consolidation with long-term strength. RSI at 47.2 reflects neutral momentum, while MACD at 25.6 shows mild bullish crossover. Bollinger Bands are moderately tight, suggesting limited volatility.

🔎 Momentum Signals: Short-term momentum is neutral-to-positive. Strong support lies at 3,350–3,370 ₹, while resistance is seen at 3,500–3,550 ₹. Entry zone: 3,350–3,370 ₹. Exit zone: 3,500–3,550 ₹.

📊 Volume Trends: Current volume (4.40 lakh) is slightly above the 1-week average (4.22 lakh), indicating steady participation and balanced sentiment.

Positive

  • Strong EPS (213 ₹) and attractive P/E (16.1) compared to industry average (18.2).
  • Quarterly PAT growth (2,656 Cr. vs 2,345 Cr.) shows robust earnings momentum.
  • FII holdings increased (+0.56%), reflecting foreign investor confidence.

Limitation

  • High debt-to-equity ratio (3.69) indicates leveraged balance sheet.
  • ROCE (13.4%) is modest compared to peers, limiting operational efficiency.
  • Stock trading below 50 DMA signals short-term weakness.

Company Negative News

  • DII holdings declined (-0.70%), showing reduced domestic institutional support.

Company Positive News

  • Quarterly profit variation (+94.9%) highlights strong earnings growth.
  • FII inflows support long-term investor confidence.

Industry

  • Industry PE at 18.2 indicates sector is moderately valued, making MUTHOOTFIN attractive at lower multiples.
  • NBFC sector benefiting from rising credit demand and gold-backed lending growth.

Conclusion

MUTHOOTFIN is consolidating near support levels with neutral momentum but strong fundamentals. Attractive valuation and robust earnings growth support long-term stability, though high leverage and short-term weakness limit immediate upside. Best suited for cautious accumulation near 3,350–3,370 ₹ with profit booking around 3,500–3,550 ₹.

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