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Muthoot Capital ServicesBOM:511766 -0.78%55 Net Margin % is 5.22% as of Jun. 2026, which is 51% below its 10-year median of 10.58. GuruFocus rates BOM:511766 with a GF Score™ of 55/100 and a GF Value™ of ₹450.02 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 537 Credit Services companies, Muthoot Capital Services ranks worse than 72.44% on this metric.
Muthoot Capital Services (BOM:511766) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Muthoot Capital Services Net Margin % Related Terms
Muthoot Capital Services Net Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, Muthoot Capital Services's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Muthoot Capital Services Net Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Muthoot Capital Services's Net Margin % distribution charts can be found below:
* The bar in red indicates where Muthoot Capital Services's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Muthoot Capital Services (BOM:511766) has a Net Margin % of 5.22% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Muthoot Capital Services and its competitors. This is 51% below median its historical median of 10.58. According to the industry distribution chart, Muthoot Capital Services ranks #389 out of 537 companies in the Credit Services industry, placing it in the top 72.4%.
Is Muthoot Capital Services' Net Margin % too high?
Muthoot Capital Services' current Net Margin % of 5.22% is 51% below median its 10-year median of 10.58. The Credit Services industry median Net Margin % is 15.07. Muthoot Capital Services' value of 5.22% is 65.4% below this industry median. Based on the distribution chart, Muthoot Capital Services ranks #389 out of 537 companies in the Credit Services industry, which is below the industry midpoint. Overall, Muthoot Capital Services has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Muthoot Capital Services' Net Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Muthoot Capital Services ranks #389 out of 537 companies for Net Margin %. This places Muthoot Capital Services in the lower half of its industry. The industry median Net Margin % is 15.07. Muthoot Capital Services' value of 5.22% is 65.4% below this benchmark. While the company's 10-year median is 10.58 vs. the industry median of 15.07, Muthoot Capital Services has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Credit Services company?
The median Net Margin % among Credit Services companies is 15.07, based on 537 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Muthoot Capital Services's current Net Margin % of 5.22% is 65.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Muthoot Capital Services and its competitors. For the Credit Services industry, the median Net Margin % is 15.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muthoot Capital Services's current Net Margin % is 5.22%, which is 51% below median its own 10-year median of 10.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muthoot Capital Services stock overvalued right now?
Based on GuruFocus' analysis, Muthoot Capital Services (BOM:511766) is currently considered Possible Value Trap. The stock's GF Value™ is ₹450.02, compared to a current price of ₹255.85 — trading 43.1% below its estimated fair value. The current Net Margin % is 5.22%, which is 51% below median its 10-year median of 10.58 and 65.4% below the Credit Services industry median of 15.07. Muthoot Capital Services' overall GF Score™ is 55/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Muthoot Capital Services (BOM:511766), the current Net Margin % is 5.22% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Muthoot Capital Services (BOM:511766) Overvalued in 2026?
Based on GuruFocus' analysis, Muthoot Capital Services stock appears to be undervalued.
The current stock price of ₹255.85 is trading 43.1% below its estimated GF Value™ of ₹450.02.
GuruFocus considers Muthoot Capital Services to be Possible Value Trap.
Key valuation signals for BOM:511766:
Net Margin %: 5.22% (51% below median its 10-year median of 10.58)
GF Value™: ₹450.02 vs. price of ₹255.85 (43.1% below fair value)
Industry Position: 65.4% below the Credit Services median (#389 of 537)
No single metric tells the full story. See the BOM:511766 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muthoot Capital Services Ltd is an Indian non-banking finance company (NBFC). It offers fund-based financial services to retail, corporate, and institutional customers. The company is engaged in the business of financing for the purchase of automobiles, mainly two-wheelers, used four-wheelers, and commercial vehicles, against hypothecation of the vehicles and granting of personal/ business loans, etc. All of the company's revenue is earned from India. The Company is engaged in the business of financing.
55GF Score
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