Muthoot Finance Q1 Results Review - A Strong Show: Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Yes Securities Report.Muthoot Finance Ltd. delivered a much stronger-than-expected operational performance in Q1 FY25, manifested in 3%/7% beat on net interest income/pre-provision operating profit despite much lower DA income in Belstar MFI. The operational beat essentially came from consolidated loan growth being 10% QOQ as against our/market expectation of 5-6%. Large growth surprise came in the mainstay gold loans business (82.5% of consolidated assets under management) wherein portfolio increased by 11% QoQ on the back of 4%/3% growth in active customers/tonnage and 6%/7% growth in avg. loan ticket/average loan per customer. The improvement in customer activity (22.5% QoQ growth in new customer acquisition and 6% QoQ growth in volume of inactive customer activation) was driven by-increase in gold loan demand,absence of IIFL,some moderation in competition from banks and lesser availability of unsecured credit to borrowers. .Belstar MFI AUM (10% of consolidated AUM) marginally declined in Q1 FY25 underpinned by a cautious disbursement stance amidst increase in delinquencies..Click on the attachment to read the full report:.Manappuram Finance Q1 Results Review - Gold Loan Growth Guidance Raised; MFI Pain Persists: IDBI Capital .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Muthoot Finance Q1 Results Review - A Strong Show: Yes Securities

Given strong visibility of growth and RoE for the company and considering asset quality issues/uncertainty in many other NBFCs, the brokerage expects Muthoot's valuation to re-rate further.

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Muthoot Finance Q1 Results Review - A Strong Show: Yes Securities

Given strong visibility of growth and RoE for the company and considering asset quality issues/uncertainty in many other NBFCs, the brokerage expects Muthoot's valuation to re-rate further.

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