Buy Muthoot Finance, target price Rs 1280: Edelweiss

Edelweiss has buy call on Muthoot Finance with a target price of Rs 1280. The current market price of Muthoot Finance Ltd. is Rs 1197.25.

Muthoot Finance Ltd., incorporated in the year 1997, is a Large Cap company (having a market cap of Rs 47948.10 Crore) operating in NBFC sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 2821.03 Crore, up 8.31 % from last quarter Sales of Rs 2604.48 Crore and up 17.67 % from last year same quarter Sales of Rs 2397.38 Crore Company reported net profit after tax of Rs 930.80 Crore in latest quarter.


Investment Rationale
The stock is forming inverse H&S formation on a daily timeframe and yesterday it gave a breakout. The inverse H&S pattern is a bullish pattern. Also, the stock has taken a support and bounced back from its 21-day EMA, indicating that the stock is in bullish momentum.

Promoter/FII Holdings
Promoters held 73.4 per cent stake in the company as of Sept 30, 2020, while FIIs held 13.9 per cent, DIIs 7.7 per cent and public and others 5 per cent.