Muthoot Finance Hits Record High, Surges 22% in 2 Months

Shares of Muthoot Finance, India’s largest gold loan provider by portfolio, reached a record high of ₹2,177.45, rising 2% during Wednesday’s intraday trade on the BSE. The stock has been on an upward trajectory for 5 consecutive trading sessions, gaining 7% during this period. Since April 2024, the stock price has skyrocketed by 68%.

Revised Growth Guidance Boosts Sentiment

Muthoot Finance’s market price has climbed 22% since November 18 after revising its gold loan growth guidance for FY25 from 15% to 25%. The company’s standalone loan assets under management (AUM) hit an all-time high of ₹90,197 crore in the first half of FY25, driven by a robust 28% year-on-year (YoY) growth in its core gold loan portfolio.

During this period, the company disbursed a record ₹10,687 crore in gold loans to 9.66 lakh new customers. Muthoot also leads its peer group with an average gold loan AUM per branch of ₹17.75 crore.

Focus on Gold Loans Amid Shifting Dynamics

While personal and home loans continue to grow, the company remains focused on expanding its gold loan portfolio. The management highlighted that reduced competition from banks and fintech firms in the gold loan space, along with fewer unsecured loan offerings, has increased demand for gold loans.

About Muthoot Finance Ltd

Muthoot Finance Ltd. is an Indian financial company and the country’s biggest non-banking financial corporation (NBFC) for gold loans. In addition to gold loans, it provides other loan options, insurance, and money transfer services and also sells gold coins.

Muthoot Finance share price is trading at ₹2,180.00, up by 2.05% today, with a 52-week high of ₹2,180.80 and a low of ₹1,261.90 as of 01:38 PM on January 01, 2025, on the NSE. 

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