Rising competition from AAA-rated NBFCs
Deep-pocketed competitors with lower cost of funds are entering gold financing, potentially pressuring market share and margins.
MUTHOOTFINANCE / bear-case history
Track the concerns that keep returning.
Muthoot Finance · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
medium
Customer churn and declining small-ticket customer base
Muthoot lost ~15 lakh small-ticket customers (below ₹50,000) as gold price rise reduced tonnage, though higher-ticket customers were added.
NPA increase due to borrower-wise classification
Stage 3 assets rose because of RBI-mandated borrower-level classification, though underlying collateral coverage remains strong at 58% LTV.
Potential yield normalization if gold prices stabilize
If gold price appreciation slows, the recent pricing benefit may reverse, compressing yields and profitability.