Muthoot Finance shares zooms in 8% on Q2 profit growth, AUM crosses Rs 1 lakh crore milestone

Shares of Muthoot Finance, India’s largest golden financier, rallied 8 percent connected November 18 pursuing beardown quarterly results and a important milestone successful assets nether absorption (AUM). 

The company’s AUM soared by 31 percent year-on-year (YoY), hitting Rs 1.04 lakh crore connected a consolidated basis. Gold indebtedness AUM, which makes up a large chunk, reached a grounds precocious of Rs 86,164 crore, driven by robust collections.

Muthoot’s quarterly nett net jumped 26 percent YoY to Rs 1,250 crore, supported by a 35 percent emergence successful full gross to Rs 4,120 crore. The request for golden loans surged arsenic the Reserve Bank of India (RBI) tightened regulations connected unsecured lending, steering borrowers towards secured recognition options.

Brokerages stay optimistic astir Muthoot Finance's aboriginal growth. Bernstein maintained its "Outperform" standing with a terms people of Rs 2,000, citing beardown operational metrics. Meanwhile, Morgan Stanley upgraded the banal from "Underweight" to "Equal weight," acknowledging improved assemblage dynamics, but noted immoderate persisting sectoral concerns.

The lender besides announced an further Rs 500 crore equity infusion into its subsidiary, Muthoot Money, aimed astatine bolstering its superior adequacy ratio.

Muthoot Finance's banal has recovered a ample portion of its losses from earlier successful November and is up by 31 percent year-to-date. Rural India remains a cardinal maturation driver, contributing astir two-thirds of the golden banal held astatine Muthoot’s extended subdivision network.

The stock’s surge comes amid affirmative sentiment driven by beardown fiscal show and strategical shifts successful the lending environment.