Muthoot Finance - Growth Revival in Sight; NIMs Under Pressure; Result Update Q3FY15 :: Edelweiss

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Buy Muthoot Finance between Rs 216.85 to Rs 206. Stoploss at Rs 195 :: HDFC Securities

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MUTHOOT FINANCE Growth picks up as regulatory landscape settles:: Edel

Muthoot Finance reported a healthy set of numbers for Q3FY13 with PAT
at INR2.7bn, in line with expectations, on the back of ~8% QoQ growth in
AUMs at INR257bn. The growth comes after 2 quarters, as gold loan
NBFCs, struggled under uncertain regulatory environment. Calculated
yields moderated by ~30bps, though still at a robust 22%, leading to 15‐
20bps decline in NIMs to 10.5%. GNPA, though technical in nature still
continues in the 1% plus range for third quarter in a row. Overall, we
would like to re‐iterate our positive stance on gold loan NBFCs expecting
sustainable RoA/RoE of 3.5%/20% plus. The current quarter is a reflection
of stability returning to the business and with the KUB Rao Committee
report filed we believe the stage is set for growth to return. The quality of
Muthoot Finance’s operations as reflected in its employees, risk
management practices and high branch productivity is also an advantage.
Maintain ‘BUY’ with a target price of INR287.

Listing of Muthoot Finance Ltd. NCD IV

 

Muthoot Finance Ltd. NCD IV has been listed today in BSE & NSE, please find the BSE listing circular for the same. The CMP according to BSE is also mentioned.

 

Notice No 20121105-11 Notice Date 05 Nov 2012 Category Company related Segment Debt Subject Listing of Non convertible debentures of Muthoot Finance Limited of face value Rs.1000 each Content Trading Members of the Exchange are hereby informed that the under mentioned securities of Muthoot Finance Limited are admitted to dealings on the Exchange with effect from Wednesday, November 7, 2012 in the list of "F GROUP". Securities: Muthoot Finance Limited Non Convertible Debentures of face value Rs. 1000 each.   Details of Securities Name of the Company Muthoot Finance Limited Face Value/Paid Up Value of Bonds Rs. 1,000/- Issue Price Rs. 1,000/- Scrip Code       934869        934870        934871          934872       934873 Scrip ID 1150MFL14 1175MFL15 1175MFL17 1200MFL17 0MFL18 Security Description 11.50% Secured, Redeemable, Non-Convertible Debentures - Option I. 11.75% Secured Redeemable, Non-Convertible Debentures - Option II. 11.75% Secured, Redeemable, Non-Convertible Debentures - Option III. 12.00% Secured, Redeemable, Non-Convertible Debentures - Option IV. Zero Coupon Secured, Redeemable, Non-Convertible Debentures - Option V. No. of Securities 1,635,021 189,433 425,554 318,118 181,278 *CMP (in Rs.) NA NA 1013.99 NA NA Distinctive Numbers  1 to 1635021  1635022 to 1824454  1824455 to 2250008  2250009 to 2568126  2568127 to 2749404 ISIN INE414G07209 INE414G07217 INE414G07225 c INE414G07241 Abbrv. Name 1150MFL14 1175MFL15 1175MFL17 1200MFL17 0MFL18 Coupon 11.5% p. a 11.75% p.a 11.75% p.a. (Payable Monthly) 12.00% p. a NA Deemed Date of Allotment 1-Nov-12 Date of Allotment 1-Nov-12 Redemption/Maturity Date 1-Nov-14 1-Nov-15 1-Nov-17 1-Nov-17 1-Nov-18 Tenure 24 Months 36 Months 60 Months 60 Months 72 Months Redemption Amount per Bond Rs. 1,000/- Rs. 1,000/- Rs. 1,000/- Rs. 1,000/- Rs. 2,000/- First Interest Paymnt Due Date* 1-Apr-13 1-Apr-13 1-Jan-13 1-Apr-13 NA Interest Payment Due Dates* 1-Apr-13 1-Apr-13 01st day of Every Month till redemption and Last Interest payment on 1-Nov-17   1-Apr-13   1-Apr-14 1-Apr-14 1-Apr-14   1-Nov-14 1-Apr-15 1-Apr-15     1-Nov-15 1-Apr-16       1-Apr-17       1-Nov-17   Credit Rating CRISIL AA-/Stable   AA-/Stable Rating Agency CRISIL Limited   ICRA Limited Put/Call Option None Market Lot 1 NCD

*The CMP has been taken today i.e., on 7th November 2012 at around 12:00 P.M.

 

 

Thanks & Regards,

 

RR NCD Team

BUY Muthoot Finance:: nirmal bang,

Snapshot
A small player in the NBFC segment, Muthoot Capital is a part of the Pappachan Muthoot Group. The company is growing at a scorching pace in the financing of the two-wheelers and three-wheeler segment.
Investment Rationale Changing the business model at the right time: The company has changed the business model at the right time and shifted from the regulatory-impacted gold loan business to relatively stable and safer automobile finance business.
Strong growth expected going forward: The AUM of the company stood at approximately Rs.300 crore. We expect the company to reach a target of Rs.450-500 crore by the end of FY’13E.
Strong promoter holding: The promoter holding in the company stood at 77 per cent. In order to comply with the regulatory requirements, the holding has been reduced to marginally below 75 per cent.
Consistent dividend pay-out ratio: The company has got a consistent dividend pay-out ratio of around 25 per cent. We expect this trend to continue further and going by the earnings for H1FY’13, the company should pay a dividend of Rs.4 for FY’13E translating into a dividend-yield of ~4.5 per cent.

Latest Bidding details for NCD Issues Religare/SCUF & Muthoot Finance ....

Latest Bidding details for NCD Issues  Religare/SCUF & Muthoot Finance are as under:

			Cumilative Till	20-Sep-2012	11:41:22 AM
RELIGARE		BSE BIDDING		NSE BIDDING		TOTAL BIDDING		UNSUBSCRIBED
Total Size	Series	BID Qty	BID Amt(Crs)	BID Qty	BID Amt(Crs)	BID Qty	BID Amt(Crs)	AMT (Crs)
100	Category 1	500	0.05	302,555	30.26	303,055	30.31	(69.69)
50	Category 2	85,710	8.57	114,822	11.48	200,532	20.05	(29.95)
150	Category 3	53,696	5.37	120,907	12.09	174,603	17.46	(132.54)
200	Category 4	432,870	43.29	578,108	57.81	1,010,978	101.10	(98.90)
500	Total	572,776	57.28	1,116,392	111.64	1,689,168	168.92	(331.08)
			Cumilative Till	20-Sep-2012	11:42:29 AM
SCUF		BSE BIDDING		NSE BIDDING		TOTAL BIDDING		UNSUBSCRIBED
Total Size	Series	BID Qty	BID Amt(Crs)	BID Qty	BID Amt(Crs)	BID Qty	BID Amt(Crs)	AMT (Crs)
50	Category 1	260,800	26.08	2,960	0.30	263,760	26.38	(23.62)
50	Category 2	1,920	0.19	8,300	0.83	10,220	1.02	(48.98)
200	Category 3	98,161	9.82	470,764	47.08	568,925	56.89	(143.11)
200	Category 4	1,224,428	122.44	988,412	98.84	2,212,840	221.28	21.28
500	Total	1,585,309	158.53	1,470,436	147.04	3,055,745	305.57	(194.43)
			Cumilative Till	20-Sep-2012	11:43:15 AM
MUTHOOT		BSE BIDDING		NSE BIDDING		TOTAL BIDDING		UNSUBSCRIBED
Total Size	Series	BID Qty	BID Amt(Crs)	BID Qty	BID Amt(Crs)	BID Qty	BID Amt(Crs)	AMT (Crs)
75	Category 1	-	-	5,525	0.55	5,525	0.55	(74.45)
175	Category 2	18,435	1.84	18,711	1.87	37,146	3.71	(171.29)
250	Category 3	137,398	13.74	103,362	10.34	240,760	24.08	(225.92)
500	Total	155,833	15.58	127,598	12.76	283,431	28.34	(486.95)

Regards,