Should I buy Muthoot Finance stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Muthoot Finance for over three years. Every month, over a million users in India trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Muthoot Finance.

What is Muthoot Finance?

The Muthoot Finance stock price

The price of Muthoot Finance stock is rising this week. The current share price is ₹2,635.10, reflecting a one-day increase of ₹9.70 and a weekly gain of 2.37%. Muthoot Finance’s market capitalization now stands at ₹1,05,790 crores, with an average three-month trading volume of about 387,700 shares. The stock trades at a P/E ratio of 19.8, offers a dividend yield of 0.99%, and carries a moderate level of volatility with a beta of 0.72. Backed by solid fundamentals and a strong market trend, Muthoot Finance continues to present notable investment potential for Indian investors.

Our full analysis of the Muthoot Finance stock

Having thoroughly examined Muthoot Finance’s latest financial results and its consistent stock performance over the past three years, our analysis leverages financial indicators, technical signals, live market data, and competitor benchmarking—synthesized using proprietary algorithms. The result offers an unrivaled view of what is driving conviction for one of India’s most dynamic financial sector leaders. So, why might Muthoot Finance stock once again become a strategic entry point into the non-banking financial sector in 2025?

Recent performance and market context

Muthoot Finance has delivered exceptional returns, with its current share price at ₹2,635.10 as of July 2025—registering an impressive 46% gain in the past year and over 16% growth in just six months. This sustained appreciation highlights strong investor interest, underpinned by a market capitalization of ₹1,05,790 crores and surging trading volumes, which average approximately 387,700 shares daily. Positive developments have been frequent, including the approval of a landmark interim dividend of ₹26 per share and a rapid network expansion of 850 new branches. Perhaps most significant is the RBI’s recent regulatory relaxation for gold-backed lending, which spurred the stock by 25% in less than two weeks. All these are unfolding amid India’s robust economic environment, marked by rising gold prices, increased credit demand, and deepening financial inclusion—offering major tailwinds for sector growth.

Technical analysis

A review of technicals reveals a bullish momentum that further strengthens the case for upside. Muthoot Finance trades above all its major moving averages: 20-day (₹2,629), 50-day (₹2,597), 100-day (₹2,287), and 200-day (₹2,458), firmly establishing an uptrend in both the short and medium terms. The 14-day RSI at 52.3 signals healthy momentum without froth, while the MACD at 12.17 has delivered consistent “buy” signals for several sessions. Most notably, key support rests at ₹2,617—closely watched by traders as a solid floor—while resistance sits just at ₹2,670, the stock’s 52-week high. The technical environment is further improved by a “Strong Buy” overall signal from major market scanners, indicating persistent upward pressure and aligning with the positive flow of institutional and retail participation.

Fundamental analysis

From a fundamentals perspective, Muthoot Finance stands out as a growth engine in India’s NBFC landscape. FY25 revenue reached ₹20,214 crores, anchored by ₹5,622 crores in a single quarter (Q4)—a 35% year-over-year rise. Profitability remains strong, with annual net profit at ₹5,352 crores (Q4: ₹1,508 crores, up 43% YoY), and an EPS for the quarter at ₹36.81. Importantly, the company crossed an all-time record AUM of ₹1,22,181 crores, reflecting both leadership in the gold loan sector and operational efficiency. Muthoot Finance’s P/E of 19.8 is highly attractive relative to its growth and Indian financial sector peers, suggesting ample room for valuation upside. The healthy dividend yield of 0.99% underscores the management’s commitment to shareholder returns, while a robust return on equity (ROE) of 19.6% and return on capital employed (ROCE) of 13.1% affirm its industry-leading efficiency. Structural strengths—like the nation’s most extensive NBFC branch network (4,800+ locations), unrivaled gold-backed loan franchise, and a trusted legacy since 1939—complete a formidable fundamental profile.

Volume and liquidity

Liquidity is another crucial factor supporting current and future performance. With an average daily volume around 387,700 shares, Muthoot Finance remains one of the most liquid NBFC stocks in India, allowing for easy entry and exit at fair prices. This depth is sustained by a well-balanced shareholding pattern: heavy promoter holding at 73.35%, complemented by institutional investors (FII: 11.02%; DII: 11.75%) and strong retail participation. The healthy free float ensures dynamic price discovery and cushions against major volatility, adding to its appeal for both short-term traders and long-term institutional accumulators.

Catalysts and positive outlook

Several standout catalysts point to continued outperformance. First, the relaxation of gold loan regulations by the RBI dramatically reduces compliance barriers, letting Muthoot capitalize on latent credit demand, especially in underserved regions. The expansion of more than 850 branches this year alone—raising its total to over 4,800—reflects the company's aggressive strategy to deepen market reach and outpace competitors. Meanwhile, digital transformation—streamlining loan approvals, disbursements, and customer acquisition—is significantly boosting operational efficiency and customer satisfaction. Muthoot Finance is also diversifying steadily into new high-margin segments like commercial loans, remittance services, and microfinance; these steps further insulate it from cyclical swings in the gold market. The company’s brand reputation, built over generations and especially strong in South India, continues to drive client loyalty, even as it expands into northern and western states. The overall bullish context is further supported by a positive macro environment, rising incomes, shift to formal credit, and swelling gold reserves—each trend uniquely in the firm’s favor.

Investment strategies

• For short-term traders: Technical momentum is strong, with the stock trading above all major moving averages and key support at ₹2,617. Positive price action and bullish signals suggest opportunities to capture trend-based gains, especially before major earnings or regulatory news.
• For medium-term investors: Recent network expansion, digitalization initiatives, and RBI’s positive regulatory changes create a runway for outsized earnings upgrades and re-rating of the stock. Investors targeting sectoral leaders with robust financials will find Muthoot Finance well-positioned to benefit from India’s evolving credit demand.
• For long-term investors: The story here is of durable compounding. A long record of market dominance, high-quality asset growth, stable dividend stream, and trusted governance make Muthoot Finance an ideal core holding for those aiming to capture India’s NBFC sector transformation over the coming years.

Is it the right time to buy Muthoot Finance?

Every indicator suggests that the fundamentals justify renewed interest in Muthoot Finance at current levels. This is a company that combines strong revenue and profit trajectories with proven agility in responding to India’s credit boom and regulatory shifts. Technicals are robust, liquidity is deep, and catalysts for growth—regulatory, operational, and market-driven—are converging. The stock may well be entering a new bullish phase, offering investors meaningful opportunities to participate in India’s long-term financial inclusion story. For investors ready to capture the momentum and solidity of a sector leader, Muthoot Finance seems to represent an excellent opportunity with its distinctive mix of resilience, growth, and reliable brand heritage.

How to Buy Muthoot Finance Stock in India

Buying Muthoot Finance stock online is straightforward and secure when using a regulated Indian broker. Investors can choose between spot buying, where you own the actual shares, and trading via CFDs (Contracts for Difference), which allows you to benefit from price movements without direct ownership. Each method presents unique benefits and considerations depending on your goals. A detailed broker comparison is available further down the page to help you select the best platform for your needs.

Spot buying

Buying Muthoot Finance stock with cash means you acquire the real shares on the Indian stock market and become a shareholder. Brokerage fees are typically fixed, around ₹100–₹200 per transaction (about $5), which is transparent and easy to manage.

Example of a Gain Scenario

If the Muthoot Finance share price is $31 (around ₹2,635), you can buy approximately 32 shares with a $1,000 investment, including a brokerage fee of about $5.

✔️ Gain scenario:

If the share price rises by 10%, your shares are then worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading on Muthoot Finance shares allows you to speculate on price movements without owning the underlying stock. With CFDs, you can use leverage (borrowed funds) to amplify gains or losses. Typical fees include the spread (the difference between buy and sell prices) and overnight financing charges if you hold your position for more than one day.

Gain scenario

You open a CFD position on Muthoot Finance shares with 5x leverage, giving you $5,000 market exposure for a $1,000 stake.

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a $1,000 investment (not including fees).

Final advice

Before investing, always compare brokers' commissions, spreads, and other terms—as these can affect your total returns. The right method for buying Muthoot Finance stock ultimately depends on your risk profile and investment objectives. For a detailed comparison of online brokers, refer to the tool provided further down the page.

7 Tips for Buying Muthoot Finance Stock

The latest news about Muthoot Finance

Muthoot Finance reports record net profit and robust gold loan growth in the latest quarter. For Q4 FY25, Muthoot Finance achieved a net profit of ₹1,508 crores, marking a 43% increase year-on-year, while consolidated revenue reached ₹5,622 crores. This growth significantly exceeded analyst expectations, driven by the company’s expanding loan book and rising demand for gold-backed financial products across India.

The company strengthens its branch network with 850 new openings, boosting national presence and accessibility. Muthoot Finance has expanded its distribution network to over 4,800 branches, including 850 new additions in the last year. This strategic growth supports customer acquisition and reinforces its leading position in the gold loan market, particularly in underserved semi-urban and rural regions.

An interim dividend of ₹26 per share is declared, reflecting strong profitability and shareholder return focus. The approved interim dividend for FY25 enhances the stock’s appeal to income-seeking investors. Muthoot Finance’s dividend yield approaches 1%, and the consistent policy of shareholder rewards underlines ongoing confidence in operational performance and cash flow stability.

Technical signals remain positive, with the stock hitting new highs and showing a “Strong Buy” trend. Muthoot Finance’s share price has reached ₹2,635.10, supported by strong technical indicators. The “Strong Buy” consensus, bullish MACD, and the stock trading above all major moving averages indicate continuing momentum in the Indian financial sector, supported by the company’s strong fundamentals.

Market sentiment is optimistic amid robust financials, leading sector position, and regulatory clarity. With a compounded annual growth rate in sales of 34% and record assets under management, Muthoot Finance’s outlook remains positive. Its dominant business model, expansive reach, and improving operational efficiency provide confidence to investors and support sustained value creation.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.