Buy Muthoot Finance, target price Rs 1610: Edelweiss

Edelweiss has buy call on Muthoot Finance with a target price of Rs 1610. The current market price of Muthoot Finance Ltd. is Rs 1506.75. Time period given by analyst is Intra Day when Muthoot Finance Ltd. price can reach defined target.

Muthoot Finance Ltd., incorporated in the year 1997, is a Large Cap company (having a market cap of Rs 60448.18 Crore) operating in NBFC sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 3118.98 Crore, up 3.40 % from last quarter Total Income of Rs 3016.43 Crore and up 18.43 % from last year same quarter Total Income of Rs 2633.58 Crore. Company reported net profit after tax of Rs 1023.76 Crore in latest quarter.

Investment Rationale
After a breakout above the trading range, Muthoot Fin has been making a base around 1450 levels from where it could give a follow through rally to the range breakout. A move above 1520 will see a strong momentum on the upside.


Promoter/FII Holdings
Promoters held 73.4 per cent stake in the company as of the fourth quarter ending March 31, 2021, while FIIs held 16 per cent, DIIs 6.6 per cent and public & others 4 per cent.