Muthooth Microfinance is ready to give bullish run till 290 rsPerfect Technicals supported by Great Fudamentals of a company.
Analysis is based on daily chart.
Perfect buying range is 215 se 225.
Target of 290 in 3 to 6 months
Stoploss of 205
MUTHOOTMF trade ideas
MULTIBAGGER STOCK! Solid Fundamentals & Technical SupremacyHello fellow Investors and Traders,
Investing is an Art and Analyzing is artwork
Remarkable Fundamentals and I have fallen in LOVE with this stock and the chart after careful analysis and deliberations...
Two dominating long term channels - Downwards and Upwards
Who will WIN ? Only time will tell
Such beautiful adherence and synchronicity all along the way respecting these channels like a river respecting its banks
Recent volatility in Global markets and international worries have negatively impacted its momentum
While it seems it has broken down on the lower side of the up trending channel, it still has a strong support at 215-220 level and I for sure am anticipating some price action here
Close above 235-240 range will initiate my BUY trade
Approximate 6-8% Stop loss is plotted on the chart
Entry , Exit and Target (T1,T2 and T3) Levels are marked on the charts
Target Levels are only indicative and I intend to HOLD on to this stock till the fundamentals stay intact and aligned to my analysis
Investments are subject to market risk. Please do your own study before you invest.
Enjoy and as always do not trade unless you have money to lose and patience to wait !!!
Long Muthoht MicroGood Growth , good fundamentals
bullish management
higher lows on weekly basisi
cmp 242
sl 200
target 600
MUTHOOTMF : Going LongThis is a small-cap microfinance company, recently listed in the market. The company manages assets totaling 10,800 crore INR and serves 32 million customers across 18 states and union territories. Muthoot Microfin distinguishes itself with its tech-driven approach, boasting in-house loan management systems, loan origination systems, and a customer app for digital collection and disbursement.
Recent regulatory changes by the RBI grant Muthoot Microfin pricing flexibility to tailor credit rates according to risk and geographies, thereby enhancing yields and net interest margins. Despite facing rejection rates of 20%, the company remains optimistic about sustaining its impressive 36% CAGR in assets under management growth.
Geographic portfolio balance is a key strategy for Muthoot Microfin, with allocations of 51% in the south, 23% in the north, 13% in the east, and 12% in the west India. This balanced approach aligns with the company's goals of customer acquisition and maintaining service quality.
The financials give a neutral sentiment, and there is not much information available about the analysts' expectations. The shareholding pattern is the major factor that caught my interest in the scrip. After the promoters, FIIs are the largest shareholders. DIIs also have a small amount of holding. Retailers hold just about half of the institutional holding. So obviously strong hands have an influential holding power in the company and are interested in the business model. The valuation is also not that high fundamentally, and technically the stock is trading at a support level.
So, I've decided to take a position for about 1.25% of the net capital, targeting the high for a profit of about 20%. I will not consider a re-entry until better clarity on the fundamentals of the company is available, which might take a few quarters.
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Other posts related to this particular position and scrip, if any, will be attached underneath. Do check those out too.
Disclaimer: The analysis shared here is for informational purposes only and should not be considered as financial advice. Trading in all markets carries inherent risks, and past performance is not indicative of future results. It's essential to conduct your own research and assess your risk tolerance before making any investment decisions. The views expressed in this analysis are solely mine. It's important to note that I am not a SEBI registered analyst, so the analysis provided does not constitute formal investment advice under SEBI regulations.
