Shares of Muthoot Finance Ltd fell sharply by 3.64% to ₹2,177.60 in early trade on May 15, reacting to its Q4 FY25 earnings declared post market hours on Wednesday. The drop comes despite the company maintaining its FY26 gold loan growth guidance at 15% and positive commentary around its lending outlook.
“The recent regulatory guidelines are a positive step for the sector; however, we have always operated with strong governance and are already aligned with these directives. As we step into FY26, we do so with optimism and remain committed to our various stakeholders,” Muthoot Finance Chairman George Jacob Muthoot said.
Analysts remain divided on the company’s near-term performance. While Muthoot highlighted that the Reserve Bank of India’s recent gold loan guidelines target newer players, the broader market continues to weigh in on rising asset quality pressure in certain loan segments. Jefferies maintained a “buy” call on the stock with a price target of ₹2,660, citing healthy earnings visibility supported by high gold prices and easing credit costs.
Bernstein also retained its “outperform” rating with a ₹2,500 target, while Morgan Stanley took a more cautious stance, giving an “equal-weight” call with a ₹2,400 target. It flagged that a fall in gold prices could dampen sentiment and offset some of the near-term earnings momentum.
Out of 25 analysts covering Muthoot Finance, 17 have a “buy” rating, six suggest “hold,” and only two recommend “sell.” With a market cap of ₹864 billion and a P/E ratio of 17.29, the stock continues to remain under close watch as it navigates through evolving regulatory dynamics and fluctuating gold prices.
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