Sunday, July 5, 2020

Muthoot Capital Services Ltd – Ride the wave of Pre-owned car demand in times of Covid-19

Muthoot Capital Services Ltd closes   at 405.30 with  a  Gain   of   + 4.70    on    03-July- 2020   with formation of  a  Green  Candle    on Daily  Price Chart.
About the Company : Muthoot Capital Services is a Systemically Important Deposit Accepting Non-Banking Financial Company (NBFC) primarily engaged in the business of financing for purchase of automobiles, mainly two wheelers against hypothecation of the vehicles and granting of personal/business loans etc.The Company  has posted Net Sales / Revenue   of 194.90 Cr & Net Profit  of 26.70 Cr in FY2020 and expected to post Net Sales / Revenue   of 185.20 Cr & Net Profit of 22.60  Cr in FY2021 and Net Sales / Revenue   of 218.50 Cr & Net Profit of 33.30 Cr in FY2022 .
Valuations  :  The Company is now Trading at X 0.60   of its Value. We have valued the company with its  expected Financial Year 2020 earnings  , which is now almost  ~40%  Discount  to its value .
The Company has total assets of 2587.20 Cr  and Net Debt of 1905.40 Cr in its books as on 31.03.2020. Return on Equity (RoE) is 12.3%( declined from 18.90% of FY2019); RoA is 2.34%; EPS is 36.8.
Why it is in Focus: The sale of used car has increased to 5Mn units  in 2020 from 3.5 mn in 2014.
“ A study by second-hand car dealer Cars24 showed 22.5 per cent of the consumers, who were planning on buying a new car last year, would prefer used cars now due to limited budget.” ( Media Report )
The Fare Value of Equity Per Share is 802 for FY2021 and 1023 for FY2022 ( based on 10% expected growth )
Disclaimer : We are / may going to take exposure shortly.
Join Us at   Telegram #
Data Source | NSE Website | Screener.In  | Capital Line | Money Control |
The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |

No comments:

Post a Comment

Thanks for Your Valuable comments. It will make Us to Serve You in Better Way. For Any STOCKS Query ,Please Call NiftyNext +91 880 2230 836.


The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The above recommendations are based on the theory of Technical Analysis and do not reflect the fundamental validity of the Scrip. does 't take any Responsibility for any losses arising from using the Stocks Recommendations.
We( WWW.NIFTYNEXT.COM) are not Registered with Any Regulatory Body in India ie SEBI,NSE,BSE,AMFI or Any Otheres.

Blog Archive