Muthoot Finance Share Prices Rally by 4% and Hit a Record High

Muthoot Finance share price reached an all-time high of ₹2,419 in today’s trading session. The stock price surged by 4%, which surpassed its previous high of ₹2,335. The last high was reached on Thursday, February 13.

Positive Market Momentum

Muthoot Finance shares have witnessed an upward trend for the past three trading sessions. Its stock price has surged by 10%. This followed an upgrade in Muthoot’s ratings by S&P Global Ratings. The agency improved its ratings to ‘BB+/B’ from ‘BB/B’. 

Growth in Muthoot’s Market Capitalisation

The surging stock price has pushed the market capitalisation of Muthoot Finance close to ₹1 trillion. At 12.07 PM, its market capitalisation was ₹96,366, as per the BSE.

About Muthoot Finance

It is a leading player in India’s gold loan market. Though the company is a small part of India’s overall financial industry, it serves over 2.5 lakh customers daily. As per the TRA’s Brand Trust Report, Muthoot Finance has been one of India’s most trusted financial services providers. This is creating a positive outlook

Rating Upgrade Rationale

S&P Global Ratings believes that Muthoot Finance will maintain strong earnings on capital employed. This will be noticeable in the upcoming year. Improvements in India’s regulatory environment will also enhance business growth.

Growth of AUM of Muthoot Finance

On March 14, the company disclosed that its gold loan AUM surpassed ₹1 trillion. This was attributed to the rising consumer demand for gold loans and slowdown in credit accessibility from other sources. 

Elevated gold prices are another reason behind this growth.Amidst this scenario, asset quality risks are limited. This comes from the brokerage firm’s result update.

Conclusion

The share price performance of Muthoot Finance reflects a positive outlook. The company has a stronghold in the gold loan market. Recent rating upgrades and expansion of its asses under management have further solidified its standing. Favourable market conditions are expected to drive continuous growth.

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