Muthoot Finance Q4 Results Review - Gold Loan Growth Above Guidance; NIMs Improved: 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. reported gold loan growth at 18% YoY as compared to 15% guidance led by higher gold prices. Overall assets under management growth recovered to 20% YoY (FY24) versus 9% YoY (FY23). Management conservatively maintained AUM growth guidance of 15% YoY for FY25. We expect 15% CAGR (FY24-26) gold loan growth versus 12% earlier. Net interest margins improved QoQ led by higher yields. Net interest income grew strongly by 12% QoQ; pre-provision operating profit grew by 8% QoQ led by higher operating expenses (up 21% QoQ). Provisions increased by five times QoQ due to higher auctions; PAT grew by 3% QoQ. Stage III loan assets improved to 3.2% versus 3.6% QoQ, due to higher auctions (Rs 1.62 billion). We revised estimates upwards by 11% (FY26 EPS) and upgrade to ‘Buy’ rating with a new target price of Rs 1,970 (earlier Rs 1,550), valuing it at 2.4 times price/adjusted book value FY26E (earlier two times) as competitive intensity moderates..Click on the attachment to read the full report:.Muthoot Finance Q4 Results: Profit Rises 17% To Rs 1,182 Crore .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 Q4 Results Review - Gold Loan Growth Above Guidance; NIMs Improved: IDBI Capital

NIMs improved to 11.6% versus 10.88% due to increase in yield on advances during Q4 FY24.

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Muthoot Finance Q4 Results Review - Gold Loan Growth Above Guidance; NIMs Improved: IDBI Capital

NIMs improved to 11.6% versus 10.88% due to increase in yield on advances during Q4 FY24.

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