Morgan Stanley has upgraded its rating on Muthoot Finance to “equal-weight” from “underweight” while raising its target to ₹1,600 per share. Despite the upgrade, the brokerage foresees a 10.6% downside from the current market price of ₹1,790, citing persistent concerns over strong gold prices and elevated valuations.
The report highlighted that regulatory uncertainties and a lack of diversification continue to limit upside potential. Morgan Stanley also pointed out Muthoot’s heavy reliance on gold prices as a significant risk factor, which, along with rising system-wide asset quality, previously justified its underweight stance.
While the upgrade signals a more balanced outlook, Morgan Stanley believes that near-term challenges could still weigh on the stock’s performance.
Disclaimer: This article is for informational purposes only. Please consult a financial advisor before making any investment decisions.
