Muthoot Finance Q3 Results Review -NIMs Stable; Robust Gold Loan Growth Sustained: IDBI Capital

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..IDBI Capital Report.Muthoot Finance Ltd.'s gold portfolio growth remain strong at 22% YoY (up 2.5% QoQ) led by higher gold prices. Overall assets under management growth sustained at 23% YoY (versus 21% YoY Q2 FY24). Management maintained AUM growth guidance of 15% growth for FY24. Muthoot Finance's net interest margins remain stable QoQ led by higher yields. Stability of NIMs remains important going forward due to competitive intensity. Net interest income grew by 2.5% QoQ led by stable margins; pre-provision operating profit grew by 4% QoQ led by lower operating expenses (down 1% QoQ). Provisions increased by 14% QoQ led by higher auctions; profit after tax grew by 4% QoQ. Stage III loan assets improved to 3.6% versus 4.3% QoQ, due to higher auctions (Rs 3.8 billion). We have moved to FY26 estimates and maintain ‘Hold’ rating with a new target price of Rs 1,550 (earlier Rs 1,300), valuing it at two times price/adjusted book value FY26E (pre-Covid average price/book value)..Click on the attachment to read the full report:.Muthoot Finance Q3 Results Review - Steady Quarter; B/S Growth In Tandem With Gold Price Movement: Systematix.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 Q3 Results Review -NIMs Stable; Robust Gold Loan Growth Sustained: IDBI Capital

Gold AUM growth has declined to 8% FY23 as against 15%+ in last three years (FY19-21) due to competitive intensity form gold loan NBFCs

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Muthoot Finance Q3 Results Review -NIMs Stable; Robust Gold Loan Growth Sustained: IDBI Capital

Gold AUM growth has declined to 8% FY23 as against 15%+ in last three years (FY19-21) due to competitive intensity form gold loan NBFCs

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