Muthoot Finance Ltd. share price target

NII stood at INR 43,601 Mn against our estimate of INR 45,000 Mn, declining 16.05% QoQ while increasing 25.54% YoY. PPOP came in at INR 34,740 Mn, compared with our estimate of INR 35,800 Mn, down 21.16% QoQ but up 24.57% YoY. Provisions were lower than expected at INR 510 Mn versus our estimate of INR 680 Mn, declining 78.69% QoQ while increasing 17.98% YoY. Asset quality remained strong, with GNPA improving to 2.28% against our estimate of 2.30%, declining 7 bps QoQ and 30 bps YoY, while NNPA stood at 1.02% versus our...

The competitive intensity in the gold loan industry has increased meaningfully, with Muthoot Finance (MUTH) management acknowledging that it has taken calibrated pricing actions to defend AUM growth.

Muthoot Finance delivered an exceptional FY26 performance, driven by strong gold loan demand, higher yields and sharp improvement in profitability. Consolidated AUM grew ~49% YoY, led by ~54% growth in gold loan AUM, while standalone PAT surged ~95% YoY. Management highlighted that the business has entered a structurally stronger growth phase, supported by elevated gold prices, rising average ticket sizes and sustained demand from self-employed and MSME borrowers. Yields improved to ~20.8%, aided by selective pricing hikes and auction-related recoveries, helping offset higher borrowing costs and...

Standalone profit rose sharply by 91% YoY to Rs. 7,048cr in 9MFY26, supported by improved operational efficiency and strong margins. At the same time, asset quality strengthened, with the Stage III ratio in the gold loan portfolio declining to 1.58% in...

Muthoot Finance reported a strong Q3FY26 performance, marked by sharp balance sheet expansion, elevated profitability and improving asset quality. The gold loan portfolio scaled to historic highs, driving standalone AUM up 51% YoY, while consolidated AUM rose 48% YoY. Profitability remained robust, with standalone PAT for 9MFY26 growing 91% YoY, supported by operating leverage, benign credit costs and recovery-led income. Importantly, average LTVs remain conservative, providing strong downside protection amid gold price volatility. Additionally, recent RBI relaxations on branch expansion are structurally...

We have backed Muthoot Finance to exhibit strong execution, which has been a constant feature with the company over the years. This has been helped by the positive demand cycle and overall favourable regulations.

*over or under performance to benchmark index We retain a cautious stance on Muthoot Finance despite its solid operating performance. The company continues to benefit from its strong gold-loan franchise and supportive industry tailwinds; however, intensifying competition in the segment...

Muthoot Finance’s (MUTH) strong operating performance in 2QFY26 was driven by: strong gold loan growth of ~45% YoY to ~INR1.25t, ~35bp QoQ improvement in GS3 to 2.25%, aided by NPA recoveries, an increase in gold tonnage by ~5% YoY to 209 tons.

The stage-3 asset ratio in the gold loan portfolio declined to 2.58% in Q1FY26 from 3.98% a year earlier, supported by customer-led repayments aided by rising gold prices and flexible repayment options....

Muthoot Finance (MUTH) reported robust gold loan growth at 40% YoY vs 41% YoY (FY25) led by higher gold prices and new customer additions. Overall AUM growth stood at 42% YoY vs 43% YoY (FY25). Management maintained guidance at 15% gold loan growth for FY26. We revised upwards gold loan growth to 15% vs 12% CAGR (FY25-27E) earlier. NIMs improved QoQ led by increase in yield on advances. NII grew strongly by 51% YoY led by rise in margins; PPoP grew by 63% YoY led by higher other income (up 135% YoY). Further, provisions declined by 81% YoY due to recovery from NPA accounts; thus PAT grew by 90% YoY. Stage...

Muthoot Finance (MUTH)’s strong operating performance in 3QFY25 was characterized by: 1) strong gold loan growth of ~34% YoY to ~INR930b, without any trade-off in margins; 2) ~5bp QoQ expansion of NIM to ~11.9%; and 3) an increase in gold tonnage by ~2% QoQ to 202 tons.

Muthoot Finance (MUTH)’s 2QFY25 performance was characterized by: 1) strong gold loan growth of ~28% YoY to ~INR862b without the associated trade-off in margins; 2) sequentially stable NIM at ~11.8%; and 3) an increase in gold tonnage by ~3% QoQ to 199 tonnes.

Muthoot reported a healthy quarter with 6.5% QoQ/28% YoY growth in gold book along with slight sequential improvement in spreads (+10 bps) driven by higher yields and contained opex aiding PAT growth of 26% YoY despite higher provisions from GL/PL delinquencies.

MUTH’s 1QFY25 performance was characterized as gold loan growth of ~11% YoY to ~INR809b, NIM compression of ~15bp QoQ to 11.8%.