SUMMER PROJECT

PROGRESS REPORT NO. 4

ON

FUNCTIONAL AREA ANALYSIS

(MUTHOOT FINANCE)

SUBMITTED TO: SUBMITTED BY:

Name: AMAN JINDAL
STUDENT NAME: AAYUSH CHAUDHARY
Designation: UID:20MBA1983
Chandigarh University MBA-Batch 2020-22
Location: Gharuan, Mohali

CHANDIGARH UNIVERSITY

GHARUAN, MOHALI (PUNJAB)

 Stock Market Analysis

Name: Muthoot Finance Limited

Ticker: MUTHOOTFIN

Exchange: NSEI

Founded: 1887

Industry: Consumer Finance

Sector: Diversified Financials

Market Cap: ₹628.700b

Shares outstanding: 401.20m

https://www.muthootfinance.com

SWOT ANALYSIS

STRENGTH

 Rising Net Cash Flow and Cash from Operating activity 

 Company with high TTM EPS Growth

 Growth in Quarterly Net Profit with increasing Profit Margin (YoY)

 Increasing profits every quarter for the past 4 quarters

  Increasing Revenue every quarter for the past 3 quarters

 Company able to generate Net Cash - Improving Net Cash Flow for last 2

years

 Annual Net Profits improving for last 2 years

 Book Value per share Improving for last 2 years

 Company with Zero Promoter Pledge

 FII / FPI or Institutions increasing their shareholding

 Near 52 Week High

 Strong Momentum: Price above short, medium and long term moving

averages

WEAKNESS

 Poor cash generated from core business - Declining Cash Flow from

Operations for last 2 years. 

 Low Piotroski Score : Companies with weak financials 

 Darkcloud cover (Bearish Reversal)

OPPORTUNITY

 Brokers upgraded recommendation or target price in the past three

months

 Decrease in Provision in recent results 

 RSI indicating price strength

THREATS

 Companies with high market cap, lower public shareholding

 Stocks with Expensive Valuations according to the Trendlyne Valuation Score

Industry Comparison

 TTM PE Ratio - Above industry Median

 Market Cap - High in industry

 Price to Book Ratio - High in industry

 TTM PEG Ratio - High in industry

Shareholding Pattern

 Promoters holding remains unchanged at 73.4% in Jun 2021 qtr

 Mutual Funds have increased holdings from 5.84% to 6.89% in Jun 2021

qtr.

 Number of MF schemes increased from 26 to 29 in Jun 2021 qtr.

 FII/FPI have decreased holdings from 15.99% to 15.02% in Jun 2021 qtr

 Number of FII/FPI investors decreased from 553 to 543 in Jun 2021 qtr

 Institutional Investors have increased holdings from 22.59% to 22.75% in

Jun 2021 qtr.

Financials

 Piotroski Score : 33

 Indicates Weak Financials

 3 year CAGR growth

Revenue 19.5%

Net Profit 27.6%

Operating Profit 22.4%

REWARDS
  PE ratio (16.5x) is below the Indian market (23.8x)

 Earnings are forecast to grow 16.97% per year

 Earnings grew by 21.2% over the past year

RISK ANALYSIS

 Debt is not well covered by operating cash flow

 High level of non-cash earnings

 Unstable dividend track record

 Significant insider selling over the past 3 months

Dividend:

Current dividend yield: 1.28%

PRICE AND VOLUME:

SEO ANALYSIS
SEO analysis is the process of closely examining a website to gain a better

understanding of how well the site has been optimized and what can be done to

help the site improve. SEO analysis requires brands to first take a careful look at

the content they have on their page.

Website used: https://www.alexa.com/siteinfo

Website : https://www.muthootfinance.com

1. COMPARISON METRICS:

These metrics show how this site compares to its competitors. The competitors

list can be found next to the search input field above.

 SEARCH TRAFFIC:

Muthoot finance website has better organic search traffic than it’s competitors

which is an advantage for it.

 BOUNCE RATE:
It shows the Percentage of visits to the site that consist of a single pageview.

Less is the bounce rate, better the website.

Muthoot finance website has less bounce rate than it’s competitors which means

more people are staying on the website than the competitors which is beneficial

for the average page time for the website.

 ALEXA RANK 90 DAY TREND

The rank is calculated using a combination of average daily visitors to this site

and pageviews on this site over the past 3 months. The site with the highest

combination of visitors and pageviews is ranked #1.

The website of Muthhot finance ranks at 236,518 with 2.27 of daily average

time.

 Traffic sources

The different sources from where the website gathers it’s visitors.

The three main traffic sources are direct, referral, and search, although your

website may also have traffic from campaigns such as banner ads or paid

search. In addition to measuring the number of visitors from each traffic source,

consider analyzing the number of goal completions from each source.

 Site Metrics

Website metrics are a variety of measurements made on a given website in

order to better track its performance and statistics. Metrics are the numbers

behind certain variables related to a website. Tracking these numbers is vital,

and can often give insight that would otherwise be overlooked.

 This website has an audience engagement score of 2.1 which has

increased over 40% in past 90 days which is good.

 The daily time on the website is 2.27 which has also increased over 71%

 And the bounce rate of the website has been decreased by 9%

So the overall site metrics of the websites have improved.

How SEO can be improved more?

1. Improve your page loading speed

As Muthoot finance has a page loading speed of 5.24 seconds so it can

improved by optimizing the website.

2.By Optimizing the images

strategically use keywords in the title of your image as well as the caption or

description.
3. By Making sure that the site is readable.

4.By Optimizing the site for mobile devices.

 5.By Properly formatting the page.