260% Dividend Declared: Muthoot Finance Shares Up 11% in One Week; Time To Buy Gold Loan NBFC Stock?

Muthoot Finance shares garnered significant investors' interest over the past few days. The NBFC stock surged over 3.15% on Tuesday, a day after it announced an interim dividend of Rs 26 per equity share for financial year 2024-25.

The company scrip witnessed a significant surge in its stock price last week as the Indian stock market recovered from losses during the same period. Experts believe that the gold loan NBFC, along with other companies of the sector, is likely to perform well in the wake of positive NIM outlook. Muthoot Finance shares garnered significant attention after RBI repo rate cut announcement and development around gold loan regulations.

Muthoot Finance Dividend

The NBFC stock had declared a 260% dividend, compared to its face value of Rs 10. The board of directors of Muthoot Finance, in their meeting held on April 22, considered and approved "payment of an interim dividend of Rs. 26 (Rupees Twenty Six) per equity share (260%) for the Financial Year 2024-25."

Apart from announcing dividend for eligible shareholders, Muthoot Finance also recommended the appointment of George Joseph as an Independent Director of the Company. It also advised an increase in the borrowing powers of the Board of Directors under Section 180 (1) (c) of the Companies Act, 2013 for an amount upto Rs. 2 Lakh Crores.

Muthoot Finance Dividend Payout

The eligible shareholders of Muthoot Finance will receive the announced dividend within 30 days from the date of declaration, ie April 22. Hence, Muthoot Finance Dividend record date is likely to fall in May. However, the company is yet to fix the dividend announcement date.

Muthoot Finance Dividend Record Date

The NBFC stock has fixed April 25 as Muthoot Finance dividend record date, determine the eligibility of shareholders for dividend payout. Dividend record date is the day when company fixes the eligibility of shareholders which are likely to receive the benefit of corporate actions like dividend, stock split, bonus issue, etc.

Muthoot Finance Dividend: How To Become Eligible?

Investors are required to purchase Muthoot Finance shares on or before the record date to become eligible for payout. "Shareholders whose names appear as on close of business hours of April 25, 2025 (a) as Beneficial owners as per the list to be furnished by the Depositories in respect of the shares held in electronic form and (b) as Members in the Register of Members of the Company in respect of shares held in physical form, would be entitled to receive the interim dividend," the company said in its stock filing on April 21.

Muthoot Finance Share Price Trend

The gold loan NBFC stock price closed 3.15% higher on BSE on Tuesday at Rs 2274.75 per share. Its market capitalisation stood at Rs 91,323 crore on Tuesday. The company scrip touched its 52-week-high mark of Rs 2,444.65 per share on BSE on 20 March, 2025. Muthoot Finance stock value has increased over 10.93% on BSE in one week. Its investors made 2.67% gains on the investment.

Muthoot Finance Stock Rally 10% in Week: Should You Buy?

Muthoot Finance shares are rallying over the past one week. Muthoot Finance share price rally has come days after the RBI announced repo rate cut. Several experts have also hinted at further strong performance by the NBFC stock.

The NBFC sector companies are supported by the reversal in the rate cycle and indications from selected NBFCs that credit costs are either peaked or nearing their peak, additionally, many of them are likely to witness NIM growth due to reduction in the repo rate, noted Motilal Oswal in a report on April 22.

"Cholamandalam, Shriram Finance, Muthoot Finance, and BAF have all delivered returns ranging from 30% to 50% over one year," it added. The brokerage kept a 'neutral' outlook on Muthoot Finance with a target price of Rs 2400 per share, it also indicated an upside of 14%.

Kotak Institutional Securities in its latest daily market commentary maintained 'add' rating for Muthoot Finance stock, indicating a 2% upside.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.