Muthoot’s Q2 revenue rose over 87% year-on-year (YoY) to Rs 2,345 crore in Q2, and its gold mortgage AUM elevated by Rs 11,723 crore, registering a ten% spike.
The overall revenue rose to Rs 6,461 crore in comparison with Rs 4,126 crore within the corresponding interval a yr in the past, Muthoot Finance mentioned in a regulatory submitting. Throughout the quarter, curiosity revenue elevated to Rs 6,304 crore towards Rs 4,068 crore within the second quarter of FY25.
The corporate’s NIM rose 51bp QoQ. Excluding restoration curiosity, yield improved 53bp QoQ as the corporate lent to the higher-yield section. Core NII expanded 18% QoQ, led by greater yield and a 10bp decline in price of funding.
Following the outcomes, home brokerage agency Nuvama raised the goal value from Rs 2,993 to Rs 4,000, citing robust and better-than-peers earnings and Muthoot’s skill to protect mortgage yields from rising competitors.
“The inventory trades at 3.8x/3x FY26E/27E BV. We’re elevating FY26E/27E EPS by 23%/28%. We revise TP to INR4000/4.5x FY26E BV from INR2,993. Demand for gold loans from low-income debtors shall keep robust,” Nuvama mentioned.Additionally learn: Goldman Sachs says Reliance Industries, Titan Firm and 12 different shares to steer subsequent market rally. Test full record
At an analyst name, the corporate administration considerably raised AUM development steerage for FY26 from 15% to 30–35%, citing robust momentum and franchise tailwinds (greater gold costs and beneficial regulatory clarifications). It additionally reiterated its intent to scale up the non-gold portfolio prudently.
(Disclaimer: Suggestions, recommendations, views and opinions given by the consultants are their very own. These don’t characterize the views of the Financial Occasions)
