CLSA has maintained its Outperform rating on Muthoot Finance with a target price of ₹4,600, following what it described as another strong quarter.
CLSA said 3QFY26 NII, PPOP and PAT beat its estimates by 6–8%, while loan growth of 11% QoQ and 51% YoY was around 2 percentage points above expectations. Calculated loan yields expanded sequentially despite a higher base, driven by continued interest recoveries that also supported the earnings beat.
Topline growth came in at 13% QoQ, reflecting the company’s inherent operating leverage given its largely fixed cost structure. Adjusted for a one-off labour code impact of ₹480 million, total opex was flat sequentially.
However, CLSA flagged a 2% sequential decline in tonnage and slowdown in customer acquisitions as the key negatives for the quarter.
Disclaimer: The views expressed above are those of CLSA and do not represent the views of Business Upturn. This article is for informational purposes only and does not constitute investment advice.
