{"id":8842,"date":"2024-11-06T09:16:39","date_gmt":"2024-11-06T09:16:39","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=8842"},"modified":"2026-02-26T11:03:45","modified_gmt":"2026-02-26T11:03:45","slug":"muthoot-capital-services-limited-november-2024-should-you-invest","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/","title":{"rendered":"Muthoot Capital Services Limited \u2013 November 2024, should you invest?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#High_Yield_AStable_Rated_Minimum_Investment_10000\" >High Yield | A+\/Stable Rated | Minimum Investment: 10,000<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#YIELD_UPTO_1080\" >YIELD UPTO 10.80%\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#Financial_Overview\" >Financial Overview<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#Snapshot_stating_the_Revenue_Expenses_PAT_In_crores\" >Snapshot stating the Revenue, Expenses, PAT (In crores)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#Cash_flow_for_last_5_years_In_crores\" >Cash flow for last 5 years (In crores)<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#Ratio_Analysis\" >Ratio Analysis<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#Issue_analysis\" >Issue analysis<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#Pros\" >Pros\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#Cons\" >Cons\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#To_get_better_returns_than_Bank_FDs_invest_in_NCD-IPOs_online\" >To get better returns than Bank FDs, invest in NCD-IPOs online.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#About_Muthoot_Capital_Services_Ltd\" >About Muthoot Capital Services Ltd.<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#Liquidity\" >Liquidity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#Strengths\" >Strengths<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#Weaknesses\" >Weaknesses<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/ncd-ipo\/muthoot-capital-services-limited-november-2024-should-you-invest\/#Invest_in_Bond_IPO_online_in_just_5_minutes\" >Invest in Bond IPO online in just 5 minutes<\/a><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"High_Yield_AStable_Rated_Minimum_Investment_10000\"><\/span><strong>High Yield | A+\/Stable Rated | Minimum Investment: 10,000<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"YIELD_UPTO_1080\"><\/span><strong>YIELD UPTO 10.80%\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Muthoot Capital Services Ltd is issuing Non-Convertible Debentures (NCDs) rated A+\/Stable by CRISIL. These debentures are offering a coupon rate of 9.90% per annum with monthly interest payment. The tenure for these NCDs is 24 months. The NCDs are secured and redeemable in nature.<\/span><\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-8854 aligncenter\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06092520\/Screenshot-2024-11-06-135641-1.png\" alt=\"\" width=\"667\" height=\"800\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06092520\/Screenshot-2024-11-06-135641-1.png 667w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06092520\/Screenshot-2024-11-06-135641-1-250x300.png 250w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06092520\/Screenshot-2024-11-06-135641-1-585x702.png 585w\" sizes=\"(max-width: 667px) 100vw, 667px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Financial_Overview\"><\/span><b>Financial Overview<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h4><span class=\"ez-toc-section\" id=\"Snapshot_stating_the_Revenue_Expenses_PAT_In_crores\"><\/span><b>Snapshot stating the Revenue, Expenses, PAT (In crores)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><img decoding=\"async\" class=\"size-large wp-image-8844 aligncenter\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090710\/Picture14-1024x575.png\" alt=\"\" width=\"1024\" height=\"575\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090710\/Picture14-1024x575.png 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090710\/Picture14-300x169.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090710\/Picture14-768x432.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090710\/Picture14-1536x863.png 1536w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090710\/Picture14-2048x1151.png 2048w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090710\/Picture14-1170x658.png 1170w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090710\/Picture14-1920x1079.png 1920w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090710\/Picture14-585x329.png 585w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Cash_flow_for_last_5_years_In_crores\"><\/span><b>Cash flow for last 5 years (In crores)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><img decoding=\"async\" class=\"size-full wp-image-8845 aligncenter\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090738\/Screenshot-2024-11-06-131341.png\" alt=\"\" width=\"816\" height=\"443\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090738\/Screenshot-2024-11-06-131341.png 816w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090738\/Screenshot-2024-11-06-131341-300x163.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090738\/Screenshot-2024-11-06-131341-768x417.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090738\/Screenshot-2024-11-06-131341-585x318.png 585w\" sizes=\"(max-width: 816px) 100vw, 816px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Cash flow refers to the movement of cash in and out of the business at a specific point in time. It represents the net balance of the cash movement.<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">*Cash flow from operating activities reflects the amount a company generates through its product of services.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">**Cash flow from investing activities reflects cash generated and spent relating to investing activities, like purchase of assets, sales of securities etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><span style=\"font-weight: 400;\">***Cash flow from financing activities gives an insight into the financial stability of a company to its investors. It reflects <\/span><span style=\"font-weight: 400;\">the net flows of cash that are used to fund the company.<\/span><\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-8846 aligncenter\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090838\/Financial-Highlights-24-25.png\" alt=\"\" width=\"901\" height=\"761\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090838\/Financial-Highlights-24-25.png 901w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090838\/Financial-Highlights-24-25-300x253.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090838\/Financial-Highlights-24-25-768x649.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090838\/Financial-Highlights-24-25-585x494.png 585w\" sizes=\"(max-width: 901px) 100vw, 901px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ratio_Analysis\"><\/span><b>Ratio Analysis<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" class=\"size-full wp-image-8847 aligncenter\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090905\/Ratio-analysis-table.png\" alt=\"\" width=\"901\" height=\"692\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090905\/Ratio-analysis-table.png 901w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090905\/Ratio-analysis-table-300x230.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090905\/Ratio-analysis-table-768x590.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090905\/Ratio-analysis-table-585x449.png 585w\" sizes=\"(max-width: 901px) 100vw, 901px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Issue_analysis\"><\/span><b>Issue analysis<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h4><span class=\"ez-toc-section\" id=\"Pros\"><\/span><strong>Pros\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The NCD is A+ rated security with a stable outlook.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The yield offered is 9.90% which is much higher than FDs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adding NCDs to a portfolio can enhance diversification, reducing overall portfolio risk by including fixed-income securities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is a better opportunity to invest in fixed income securities for the short term, earning monthly interest.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company is actively borrowing money with over 1600 crore Rupees raised in FY 2024.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Cons\"><\/span><strong>Cons\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The operations of the NBFC is geographically constrained. It is majorly operated in South India.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"To_get_better_returns_than_Bank_FDs_invest_in_NCD-IPOs_online\"><\/span><a href=\"https:\/\/goldenpi.com\/bond-better-return-fds\"><b>To get better returns than Bank FDs, invest in NCD-IPOs online.\u00a0<\/b><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"About_Muthoot_Capital_Services_Ltd\"><\/span><b>About Muthoot Capital Services Ltd.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Muthoot Capital Services Ltd, backed by the Muthoot Pappachan Group, is a publicly listed Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India. Founded in 1994, it stands out as one of India&#8217;s most progressive automobile finance companies. The company provides both fund-based and non-fund-based financial services to retail, corporate, and institutional clients. Their product portfolio includes two-wheeler loans, used car loans, and fixed deposit investment products. Mr. Ramandeep Singh Gill serves as the Chief Financial Officer for the company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here is a table showing their products and interest rates.<\/span><\/p>\n<p><img decoding=\"async\" class=\"size-large wp-image-8848 aligncenter\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090941\/Picture5-1024x434.png\" alt=\"\" width=\"1024\" height=\"434\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090941\/Picture5-1024x434.png 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090941\/Picture5-300x127.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090941\/Picture5-768x325.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090941\/Picture5-1536x651.png 1536w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090941\/Picture5-2048x868.png 2048w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090941\/Picture5-1170x496.png 1170w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090941\/Picture5-1920x813.png 1920w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06090941\/Picture5-585x248.png 585w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">In addition, Muthoot offers secured business loans and loyalty loans to its existing customers at attractive rates.<\/span><\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-8849 aligncenter\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06091303\/Improved-customers.png\" alt=\"\" width=\"901\" height=\"526\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06091303\/Improved-customers.png 901w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06091303\/Improved-customers-300x175.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06091303\/Improved-customers-768x448.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06091303\/Improved-customers-585x342.png 585w\" sizes=\"(max-width: 901px) 100vw, 901px\" \/><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Liquidity\"><\/span><strong>Liquidity<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>MCSL has a strong liquidity position, with positive asset-liability management (ALM) across all buckets up to one year as of July 2024. It holds \u20b9365.34 crore in cash and equivalents against obligations of \u20b9255.6 crore over the next two months, resulting in a liquidity coverage of 1.4x. This assumes no collections, indicating a stable short-term liquidity. The company anticipates rolling over its credit lines and can rely on support from MPG if needed.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Strengths\"><\/span>Strengths<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li><strong>Support from Muthoot Pappachan Group (MPG):<\/strong><br \/>\nMuthoot Capital Services Ltd. (MCSL) benefits significantly from MPG\u2019s financial and operational backing, leveraging MPG\u2019s network and access to Muthoot Fincorp Ltd (MFL) branches and clients, aiding in loan book expansion.<\/li>\n<li><strong>Adequate Capitalization:<\/strong><br \/>\nMCSL\u2019s net worth improved to \u20b9622.9 crore as of June 2024, up from \u20b9489 crore in March 2023. The gearing ratio also strengthened, moving from 3.9x to 2.8x, showcasing strong capital adequacy, with a target to keep it below 5x.<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"size-full wp-image-8850 aligncenter\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06091348\/Improved-Asset.png\" alt=\"\" width=\"900\" height=\"683\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06091348\/Improved-Asset.png 900w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06091348\/Improved-Asset-300x228.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06091348\/Improved-Asset-768x583.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2024\/11\/06091348\/Improved-Asset-585x444.png 585w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/p>\n<ul>\n<li><strong>Operational Efficiency and Collection Performance:<\/strong><br \/>\nInitiatives in collection mechanisms have reduced 90+ days past due (DPD) from 16.4% in March 2023 to 9.3% by June 2024. Gross NPAs also improved, decreasing to 10.2% from 20.6% in FY23, and collection efficiency has consistently been above 99%.<\/li>\n<li><strong>Strong Promoter Expertise:<\/strong><br \/>\nWith over 30 years in the lending industry, the promoters\u2019 experience is pivotal in scaling operations, supported by a seasoned management team, ensuring robust governance.<\/li>\n<li><strong>Strategic Partnerships in Co-Lending:<\/strong><br \/>\nCollaborations with WheelsEMI, Manba Finance, Up Money, EV.fin, and Credit Wise Capital enhance customer reach in the two-wheeler financing sector, aligning well with MCSL\u2019s growth strategy.<\/li>\n<li><strong>Exemplary Co-Lending Record:<\/strong><br \/>\nIn co-lending, MCSL has maintained a zero Non-Performing Assets (NPA) record, showcasing effective risk management and high asset quality in this segment.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Weaknesses\"><\/span>Weaknesses<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li><strong>High Borrowing Costs:<\/strong><br \/>\nMCSL\u2019s borrowing cost is relatively high at 9.8%, impacting profitability.<\/li>\n<li><strong>Asset Quality Still Recovering:<\/strong><br \/>\nDespite improvement, asset quality remains modest, with a Gross NPA of 9.84% as of June 2024. COVID-19 impacted collections and increased provisioning, and while GNPAs have declined, collections from delinquent buckets are a continued risk.<\/li>\n<li><strong>Moderate Earnings Profile:<\/strong><br \/>\nEarnings show improvement, but profitability is still recovering. FY24 PAT was \u20b9123 crore, with a RoMA of 3.4%. In Q1 FY25, PAT was \u20b911.4 crore, with an annualized RoMA of 1.8%, indicating further potential for growth.<\/li>\n<li><strong>Geographical Concentration:<\/strong><br \/>\nThe portfolio is concentrated in southern India, with 60% of loans as of June 2024, creating exposure to regional market risks. Although expanding in the north and east, high regional concentration remains a vulnerability.<\/li>\n<\/ul>\n<h1 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Invest_in_Bond_IPO_online_in_just_5_minutes\"><\/span><a href=\"https:\/\/goldenpi.com\/bond-ipo-online\"><b>Invest in Bond IPO online in just 5 minutes<\/b><\/a><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><span style=\"font-weight: 400;\"><strong>Source-<\/strong> Prospectus October 23, 2024<\/span><\/p>\n<p><strong>Disclaimer &#8211; <\/strong><span style=\"font-weight: 400;\">The information is published as on date 04\/03\/2024 based on information available on Prospectus October 23, 2024. The information may be subject to change in case of change in terms of prospectus or any other reason as the case <\/span><span style=\"font-weight: 400;\">may bemaybe<\/span><span style=\"font-weight: 400;\">. Contents which are exclusively for educational information\/knowledge sharing on capital market concepts and has no influence the investment\/sale decisions of any investors<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>High Yield | A+\/Stable Rated | Minimum Investment: 10,000 YIELD UPTO 10.80%\u00a0 Muthoot Capital Services Ltd is issuing Non-Convertible Debentures (NCDs) rated&hellip;<\/p>\n","protected":false},"author":4,"featured_media":12219,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[113,152],"tags":[],"class_list":["post-8842","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ncd-ipo","category-muthoot-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Muthoot Capital Services Limited \u2013 November 2024, should you invest? 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