Buy Muthoot Finance, target price Rs 1160: Kotak Securities

Kotak Securities has buy call on Muthoot Finance Ltd. with a target price of Rs 1160. The current market price of Muthoot Finance is Rs 1127.1. Kotak Securities Limited recommended to keep stop loss at Rs 1110.
Muthoot Finance, incorporated in the year 1997, is a Large Cap company (having a market cap of Rs 45317.48 Crore) operating in NBFC sector.

Muthoot Finance key Products/Revenue Segments include Interest, Service Charges, Income From Sale Of Share & Securities, Sale of services and Dividend for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 3298.36 Crore, up 8.84 % from last quarter Total Income of Rs 3030.47 Crore and up 8.46 % from last year same quarter Total Income of Rs 3041.14 Crore. Company has reported net profit after tax of Rs 1009.26 Crore in latest quarter.

The company’s top management includes Mr.George Jacob Muthoot, Mr.Vadakkekara Anthony George, Mr.Jose Mathew, Mrs.Usha Sunny, Mr.Ravindra Pisharody, Mr.Jacob Benjamin Koshy, Mr.Abraham Chacko, Mr.George Muthoot Jacob, Mr.George Muthoot George, Mr.George Alexander, Mr.Alexander George, Mr.George Thomas Muthoot, Mr.George Alexander Muthoot, Mr.Pratip Chaudhuri. Company has Varma & Varma as its auditors. As on 31-03-2023, the company has a total of 40 Crore shares outstanding.

Investment Rationale
Breakout from bullish flag chart pattern, which indicates upward momentum to sustain in near term.

Promoter/FII Holdings
Promoters held 73.35 per cent stake in the company as of 31-Mar-2023, while FIIs owned 9.37 per cent, DIIs 12.66 per cent.