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Muthoot Capital ServicesBOM:511766 -0.78%55 Return-on-Tangible-Equity is 4.87% as of Jun. 2026, which is 68% below its 10-year median of 15.08. GuruFocus rates BOM:511766 with a GF Score™ of 55/100 and a GF Value™ of ₹449.87 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 527 Credit Services companies, Muthoot Capital Services ranks worse than 60.72% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Muthoot Capital Services's annualized net income for the quarter that ended in Jun. 2026 was ₹325 Mil. Muthoot Capital Services's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹6,668 Mil. Therefore, Muthoot Capital Services's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 4.87%.
The historical rank and industry rank for Muthoot Capital Services's Return-on-Tangible-Equity or its related term are showing as below:
BOM:511766'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -33.37 Med: 15.08 Max: 22.36
Current: 3.64
During the past 13 years, Muthoot Capital Services's highest Return-on-Tangible-Equity was 22.36%. The lowest was -33.37%. And the median was 15.08%.
BOM:511766's Return-on-Tangible-Equity is ranked worse than 60.72% of 527
companies
in the Credit Services industry
Industry Median: 7.05
vs BOM:511766: 3.64
Muthoot Capital Services (BOM:511766) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Muthoot Capital Services Return-on-Tangible-Equity Related Terms
Muthoot Capital Services Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Muthoot Capital Services's Return-on-Tangible-Equity 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.
Muthoot Capital Services Return-on-Tangible-Equity Chart
BOM:511766 vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Muthoot Capital Services's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Muthoot Capital Services's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Muthoot Capital Services's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 4.87% mean?
Muthoot Capital Services (BOM:511766) has a Return-on-Tangible-Equity of 4.87% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Muthoot Capital Services and its competitors. This is 68% below median its historical median of 15.08. According to the industry distribution chart, Muthoot Capital Services ranks #320 out of 527 companies in the Credit Services industry, placing it in the top 60.7%.
Is Muthoot Capital Services' Return-on-Tangible-Equity too high?
Muthoot Capital Services' current Return-on-Tangible-Equity of 4.87% is 68% below median its 10-year median of 15.08. The Credit Services industry median Return-on-Tangible-Equity is 7.05. Muthoot Capital Services' value of 4.87% is 30.9% below this industry median. Based on the distribution chart, Muthoot Capital Services ranks #320 out of 527 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' Return-on-Tangible-Equity compare to V and MA?
According to the Credit Services industry distribution chart, Muthoot Capital Services ranks #320 out of 527 companies for Return-on-Tangible-Equity. This places Muthoot Capital Services in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.05. Muthoot Capital Services' value of 4.87% is 30.9% below this benchmark. While the company's 10-year median is 15.08 vs. the industry median of 7.05, 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 Return-on-Tangible-Equity for a Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.05, based on 527 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Muthoot Capital Services's current Return-on-Tangible-Equity of 4.87% is 30.9% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Muthoot Capital Services and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muthoot Capital Services's current Return-on-Tangible-Equity is 4.87%, which is 68% below median its own 10-year median of 15.08. 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 ₹449.87, compared to a current price of ₹255.85 — trading 43.1% below its estimated fair value. The current Return-on-Tangible-Equity is 4.87%, which is 68% below median its 10-year median of 15.08 and 30.9% below the Credit Services industry median of 7.05. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Muthoot Capital Services (BOM:511766), the current Return-on-Tangible-Equity is 4.87% 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 ₹449.87.
GuruFocus considers Muthoot Capital Services to be Possible Value Trap.
Key valuation signals for BOM:511766:
Return-on-Tangible-Equity: 4.87% (68% below median its 10-year median of 15.08)
GF Value™: ₹449.87 vs. price of ₹255.85 (43.1% below fair value)
Industry Position: 30.9% below the Credit Services median (#320 of 527)
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
Get the complete analysis for BOM:511766
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