Muthoot Finance Share: Despite better performance in the third quarter of the financial year 2025-26, the shares of gold loan company Muthoot Finance are seeing a decline today.
Muthoot Finance Share: Shares of Muthoot Finance Ltd, an NBFC that offers loans against gold, are seeing a decline today. On Friday, February 13th, Muthoot Finance shares fell by approximately 11.33%. Interestingly, the company's net profit increased by 95% in the third quarter of the financial year 2025-26.
At 10:07 am on Friday, shares of Muthoot Finance were trading at ₹3,608 per share, down 11.33% on the BSE. Within 30 minutes of trading, the stock hit an intraday low of ₹3,576.60 per share. Shares of this company, with a market cap of ₹1,44,849.83 crore, may be seeing a decline today, but brokerages remain confident in its performance.
What does the brokerage have to say?
Motilal Oswal has maintained a 'buy' rating on Muthoot Finance stock with a target price of Rs 4,500 per share. The brokerage said in its report, "With its ability to deliver industry-leading gold loan growth and best-in-class profits, MUTH is one of the best franchises for gold loans in the country. We maintain our 'neutral' rating on the stock with a target price of Rs 4,500."
Meanwhile, Nuvma has maintained its 'buy' rating on the stock and set a target price of ₹4,700 per share. "Given Muthoot's strong earnings and ability to protect loan yields from increasing competition, we maintain our 'buy' rating," Nuvma said in its report. The brokerage also raised its target price to ₹4,700 from ₹4,000 previously. Nuvma expects strong demand for gold loans from low-income borrowers. Regulators are supporting gold finance, and opening new branches has now been made easier.
Amazing performance in the December quarter
Muthoot Finance's profit nearly doubled to ₹2,656 crore in the October-December quarter of fiscal year 2025-26, driven largely by record-breaking interest rates on gold loans. In the December quarter of the previous year, it had posted a net profit of ₹1,363 crore. Its operating revenue during this period increased 64% year-over-year to ₹7,243 crore.
Muthoot Finance's net interest income (NII) increased 63% to ₹4,467 crore in the December quarter. Its interest income in the same quarter last year was ₹2,721 crore. As of December 31, 2025, its consolidated loan assets under management (AUM) reached an all-time high of ₹1.48 lakh crore, a 51% increase over the previous year.
