Muthoot Fincorp Limited is, a non-deposit taking, systemically important NBFC registered with the RBI started in 1997. They have been engaged in the Gold loans business for over a decade and are headquartered in Kerala, India. The Company provides retail loan products, primarily comprising of Gold loans. The Gold loan products include Muthoot Blue Guide Gold loan, Muthoot Blue Bright Gold loan, Muthoot Blue Power Gold loan, Muthoot Blue Bigg Gold loan, Muthoot Blue Smart Gold loan and 24x7 Express Gold loan. 'Smart Plus Gold loan', the other Gold loan variant of the Company is specifically designed for salaried customers, with tenure of up to 24 months. The Gold loan portfolio of the Company as of March 31, 2020 comprised approximately 30.07 lakhs loan accounts. As of June 30, 2020, the Company operated out of 3541 branches located across 20 states, including union territory of Andaman and Nicobar Islands and the national capital territory of Delhi and employed 16,025 employees including 255 contracted experts in its operations. For the FY20 and FY19 revenues from the Gold loan business constituted 84.37% and 82.86% of the total income on standalone basis as per Ind AS, respectively. For the FY20 and FY19 the gold loan portfolio of the Company earned an interest of Rs 1,09,121.97 lakhs and Rs 2,05,896.50 lakhs on standalone basis as per Ind AS, respectively. For the Fiscals 2018 and 2017 revenues from the Gold loan business constituted 85.63% and 75.44%, respectively, of the total income on standalone basis as per IGAAP. For the Fiscals 2018 and 2017 the gold loan portfolio of the Company earned an interest of Rs 1,87,258.25 lakhs and Rs 1,58,777.11 lakhs, respectively, as per IGAAP. The Gross NPAs as a percentage of total loan assets as per IGAAP was 1.90% and 1.58%, as of March 31, 2018 and 2017 respectively. The Net NPAs as a percentage of total loan assets as per Indian GAAP was 1.45% and1.14% as of March 31, 2018 and 2017 respectively. The Stage 3 Assets as a percentage of total loan assets as per Ind AS was 1.86% and 2.62% as of March 31, 2020 and March 31, 2019, respectively. The Stage 3 Assets net of Stage 3 Assets net of Stage 3 Provision as per Ind AS as on March 31, 2020 and March 31, 2019 were 0.61% and 1.17%, respectively, on a standalone basis. Brand name of company, good rating and lucrative coupon rates make this offer a worthy option for investors looking for long term fixed income. We give SUBSCRIBE rating to debt issue.
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