Muthoot Finance shares rise 3% after RBI approves opening 115 branches

Muthoot Finance shares jumped 2.6% to an intraday high of Rs 2,241.60 on the BSE on Thursday, February 27, after the Reserve Bank of India (RBI) granted the company approval to open 115 new branches.

"It is advised that you have been granted permission for the opening of 115 new branches as requested. You are also advised to inform the bank of the details of the branches opened," In a letter to the company, the RBI stated.

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The central bank also instructed Muthoot Finance to ensure adequate security arrangements and proper storage facilities for gold jewellery, including safe deposit vaults, in compliance with existing regulations.

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Muthoot Finance Q3 earnings

The gold loan-focused NBFC reported a nearly 26% year-on-year (YoY) growth in its net profit for the third quarter ended December at Rs 1,389.18 crore, compared to the Rs 1,103.52 crore profit reported in Q3 of the previous financial year.

The company’s revenue from operations surged 36% YoY to Rs 5,190 crore in the third quarter, up from Rs 3,820 crore in the corresponding period last year. Interest income also saw a sharp rise, reaching Rs 5,067 crore in the December quarter.

Muthoot Finance reported its highest-ever consolidated loan assets under management (AUM) at Rs 1.11 lakh crore as of December 31, 2024. During the quarter, gold loan assets increased by Rs 6,800 crore, while consolidated loan AUM grew by 7% sequentially and 34% YoY to Rs 1,11,308 crore.

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Muthoot Finance shares target price

As per Trendlyne data, the average target price of the stock is Rs 2,161, a downside of 1% from the current market prices. The consensus recommendation from 20 analysts for the stock is a 'Buy'.

Muthoot Finance shares performance

On Tuesday, Muthoot Finance shares closed at Rs 2,184, down 0.16% on the BSE, while the benchmark Sensex gained 0.2%. The stock has surged 15% in the past six months and 126% over the last two years. The company’s market capitalization stands at Rs 87,679 crore.

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