Muthoot Finance (MUTH) maintained robust growth in gold AUM at 32% YoY vs 32% YoY (Q2FY21). Overall AUM grew by 28% YoY; management guided for 25% YoY AUM growth for FY21 as against 15% earlier (Q2FY21). Profitability growth was lower at 22%. NII grew by 13% YoY led by decline in margins; while PPoP grew by 20% YoY led by improvement in cost to income ratio (24% vs 28% YoY). Provisions declined by 4% YoY while increased substantially by 4.5x QoQ as asset quality remain stable. Stage III loan assets at 1.30% vs 1.26% QoQ, however NPA is never a cause of concern in gold loan. We believe that MUTH with ~89% of AUM in the Gold loan portfolio has lower risk of...