Bernstein has maintained an ‘Outperform’ rating on Muthoot Finance, setting a target price of ₹2,500 per share, indicating a 14.9% upside potential from the current market price of ₹2,176.50.
The brokerage highlighted that Muthoot Finance has once again exceeded expectations, with 9MFY25 gold AUM growth reaching 28%, surpassing even its upwardly revised guidance of 25%. Despite the strong performance, management has not issued a further upward revision to its growth outlook.
Bernstein believes that continued strength in gold prices will likely enable Muthoot Finance to achieve over 30% AUM growth in FY25.
While credit costs remained flat sequentially, they continue to be elevated. However, the company reported a marginal improvement in net interest margins (NIM), signaling sustained profitability.
With robust gold loan demand, strong operational execution, and a favorable macro environment, Bernstein remains bullish on Muthoot Finance’s long-term growth prospects.
Disclaimer: The above article is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making any investment decisions.
