About Muthoot finance

Muthoot Finance is India’s largest gold loan NBFC, providing quick credit to individuals by accepting gold jewellery as collateral. It operates a vast national network of over 6,000 branches and is regulated by the RBI. While gold loans are its core business, it also offers microfinance, housing finance, and money transfer services. The company is a key player in India’s financial sector, serving millions of customers, especially in semi-urban and rural areas.

Objectives of this study

To calculate the beta of Muthoot finance company and observe its significance.

Data collection

The historical data of Muthoot finance company and nifty 50 index data was downloaded from the website from the period 1/12/24 to 30/11/25. The data was manipulated to get Friday closing prices.

Data analysis

The intercept = a = -5447.7686

Coeffecient = -bx = 0.3244x

a + bx = -5447.7686 + .03244x

The above equation tells us the relationship between nifty 50 and equity of Muthoot finance, negative sign means if equity of Muthoot finance rises, demand will fall and vice versa. If the equity rises by 1 unit, the nifty 50 will rises by 0.3244 units.

t-stat for beta is 7.089423998, p value of which is 6.692 is more than 6.692, rather beta is statistically significant at 1% level. R2 is .5221, which means 52.11% of the Muthoot finance is explained by nifty 50. 47.89% is the error due to the other variable which are not in the model. F is 50.259 and the p value is 6.692, the overall model is statistically significant.

No of observations = 48

R2 = 0.5221

F – value = 50.259

P value significance = 6.692

References

Saladi Lokesh, K Lalitha (2025) Financial Performance of Non-Banking Finance Companies (NBFCs): Muthoot Finance, Issue Vol. 13 No. 2 (2025): Volume 13 Issue 2 2025

Conclusion

Since beta of Muthoot finance is 0.3244, it indicates that it is more volatile than the nifty 50 market returns, hence it is suitable for long term investment.