The rating of an issuer company reflects its past growth and performance. The rating increases when the company consistently performs well and decreases when it is not performing well.
Categories
Low risk:
AAA, AA+, AA, AA-, A+, A, A-
Moderate risk
BBB+, BBB, BBB-, BB+, BB
High risk
BB-, B+, B, B-, C, D
The rating agency for this Bond is CRISIL.
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About
Headquartered in Kerala, Muthoot Fincorp Limited is a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI) and engaged primarily in offering gold loans. These loans are secured by gold jewellery and cater to individuals who face challenges accessing formal credit. They include Muthoot Blue Super Value Loan, Easy Blue, and 24x7 Express Gold loan. In addition to gold loans, the company provides foreign exchange and money transfer services as a sub-agent of registered agencies. Muthoot Fincorp is also involved in the generation and sale of wind energy in Tamil Nadu and engages in real estate activities through joint ventures.Muthoot Fincorp has 3,736 branches across 25 states and employs over 26,000 people. The company has recently been authorised to act as a corporate agent under the Insurance Act, 1938.;
Pros and Cons
Pros
Cons
Over 20 years in the gold loan business with strong brand recognition, especially in South India.
Operates 3,736 branches across 25 states, enabling deep rural and semi-urban penetration.
Ties with nationalised and private banks help secure capital at competitive rates.
Rated Crisil AA-/Stable, reflecting relatively strong creditworthiness for NCDs.
PAT rose from ₹412.55 Cr (FY22) to ₹1,047.98 Cr (FY24), showing strong profitability.