Muthoot Finance Q3 Results Review - Steady Quarter; B/S Growth In Tandem With Gold Price Movement: Systematix

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..Systematix Report.Muthoot Finance Ltd. reported in-line performance with earnings growth of 14% YoY aided by steady net interest margin and 27% YoY growth in consolidated asset under management. Gold AUM growth was marginally better than expected at 22% YoY. The yield on the gold loan book inched up by 14 basis points QoQ at 17.8%. Net interest income/OP came in at Rs 19.0 billion / 13.9 billion in line with our estimates. While the gross / net stage three assets in standalone entity improved to 3.6%/3.2% from 4.0%/3.6% in Q2, GS3 asset ratio in microfinance subsidiary increased from 1.48% in Q2 to 1.88%. Healthy growth momentum for gold loans coupled with other products i.e. home loan, microfinance, and personal loan, expected to drive 16% compound annual growth rate in consolidated AUM over FY23-26. Thus, return on asset/ return on equity expected to improve to 5%/ 18% by FY26E. We value Muthoot Finance at ~2.2 times FY26E consolidated book value to arrive at a revised target price of Rs 1,675 (earlier Rs 1, 550), as we roll forward our valuation to FY26 estimates. Maintain 'Buy' rating on the stock..Click on the attachment to read the full report:.Cipla Expects To Sustain 24% Ebitda Margin, Says Management.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 - Steady Quarter; B/S Growth In Tandem With Gold Price Movement: Systematix

Overall gold loan market is improving led by healthy demand.

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Muthoot Finance Q3 Results Review - Steady Quarter; B/S Growth In Tandem With Gold Price Movement: Systematix

Overall gold loan market is improving led by healthy demand.

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