Muthoot Finance's Q2FY19 has seen revival in momentum of its core business with AUM growth of 17% YoY as against 11% during last quarter. NII at Rs4.8bn (growth of 9% YoY) and PAT at Rs11bn (de-growth of 5% YoY) has narrowly missed our estimate of Rs4.9bn and Rs11.3bn respectively. Stage III loan assets have eased by 94bps sequentially to 1.9%. All the subsidiaries are witnessing healthy traction, accounting for 10% of the overall loan book. On the back of higher loan growth, we raise our TP to...