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Muthoot MicrofinBOM:544055 -1.09%57 Net Margin % is 13.43% as of Jun. 2026, which is 88% above its 10-year median of 7.14. GuruFocus rates BOM:544055 with a GF Score™ of 57/100 and a GF Value™ of ₹179.91 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 537 Credit Services companies, Muthoot Microfin ranks worse than 59.59% on this metric.
Muthoot Microfin (BOM:544055) 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 Microfin Net Margin % Related Terms
Muthoot Microfin Net Margin % Historical Data
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The historical data trend for Muthoot Microfin's Net Margin % can be seen below:
* 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 Microfin'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 Microfin Net Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Muthoot Microfin's Net Margin % distribution charts can be found below:
* The bar in red indicates where Muthoot Microfin'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 Microfin (BOM:544055) has a Net Margin % of 13.43% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Muthoot Microfin and its competitors. This is 88% above median its historical median of 7.14. According to the industry distribution chart, Muthoot Microfin ranks #320 out of 537 companies in the Credit Services industry, placing it in the top 59.6%.
Is Muthoot Microfin's Net Margin % too high?
Muthoot Microfin's current Net Margin % of 13.43% is 88% above median its 10-year median of 7.14. The Credit Services industry median Net Margin % is 15.34. Muthoot Microfin's value of 13.43% is 12.5% below this industry median. Based on the distribution chart, Muthoot Microfin ranks #320 out of 537 companies in the Credit Services industry, which is below the industry midpoint. Overall, Muthoot Microfin has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Muthoot Microfin's Net Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Muthoot Microfin ranks #320 out of 537 companies for Net Margin %. This places Muthoot Microfin in the lower half of its industry. The industry median Net Margin % is 15.34. Muthoot Microfin's value of 13.43% is 12.5% below this benchmark. While the company's 10-year median is 7.14 vs. the industry median of 15.34, Muthoot Microfin 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 15.34, 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 Microfin's current Net Margin % of 13.43% is 12.5% 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 Microfin and its competitors. For the Credit Services industry, the median Net Margin % is 15.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muthoot Microfin's current Net Margin % is 13.43%, which is 88% above median its own 10-year median of 7.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muthoot Microfin stock overvalued right now?
Based on GuruFocus' analysis, Muthoot Microfin (BOM:544055) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹179.91, compared to a current price of ₹209.20 — trading 16.3% above its estimated fair value. The current Net Margin % is 13.43%, which is 88% above median its 10-year median of 7.14 and 12.5% below the Credit Services industry median of 15.34. Muthoot Microfin's overall GF Score™ is 57/100 with 5 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 Microfin (BOM:544055), the current Net Margin % is 13.43% 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 Microfin (BOM:544055) Overvalued in 2026?
Based on GuruFocus' analysis, Muthoot Microfin stock appears to be overvalued.
The current stock price of ₹209.20 is trading 16.3% above its estimated GF Value™ of ₹179.91.
GuruFocus considers Muthoot Microfin to be Modestly Overvalued.
Key valuation signals for BOM:544055:
Net Margin %: 13.43% (88% above median its 10-year median of 7.14)
GF Value™: ₹179.91 vs. price of ₹209.20 (16.3% above fair value)
Industry Position: 12.5% below the Credit Services median (#320 of 537)
No single metric tells the full story. See the BOM:544055 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muthoot Microfin Ltd is a microfinance institution providing micro-loans to women customers with a focus on rural regions of India. The company offers loan products such as group loans for livelihood solutions such as income generating loans, Pragathi loans, and individual loans; life betterment solutions including mobile phones loans, solar lighting product loans, and household appliances product loans; health and hygiene loans such as sanitation improvement loans; and secured loans in the form of gold loans and Muthoot Small & Growing Business loans.
57GF Score
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