Muthoot Finance Share Price On Fire Today! Gold Loan NBFC Zooms 11% Post Q1 Result; Is There More Fuel Left?

Muthoot Finance Share Price: Muthoot Finance shares rallied nearly 11% on Thursday after the gold loan Non Banking Financial Corporation (NBFC) reported a 73% jump in its net profit for the June quarter of financial year 2025-26.

Muthoot Finance shares were trading 11.18% higher at Rs 2.791 per share on BSE at 10:33 am with a market capitalisation of Rs 1,11,323.19 crore. The stock had touched an intraday high mark of Rs 2797 per share and an intraday low mark of Rs 2671.9 per share.

Muthoot Finance Q1 Result Review

Muthoot Finance outshined its peers in the NBFC category with an all-round upbeat June quarter result. The NBFC reported strong AUM growth of 10% and a significant improvement in net interest margin, favourable opex and a significant decrease in credit cost, noted brokerage Nuvama in its report.

The financial services provider's strong growth was led by boisterous gold loan growth, improvement in non performing asset (NPA) recoveries, adjusted spreads, according to Motilal Oswal. "We raise our FY26 EPS estimates by ~10% to factor in higher loan growth and lower credit costs. We model a standalone AUM CAGR of ~20% over FY25-27E. This, we believe, will result in a PAT CAGR of ~28% over this period. We model an RoA/RoE of 5.2%/22% for FY27," noted the brokerage in its report.

Muthoot Finance Share Price Jumps 11%: More Steam Left?

Given the sharp jump in gold loan NBFC stock, Muthoot Finance share price is hovering close to most of the brokerages' target price. Motilal Oswal, early Thursday, gave a 'Buy' rating, targeting Muthoot Finance share price at Rs 2,790 per share. Whereas, Nuvama brokerage gave a relatively higher target price of Rs 2,993 per share.

"With strong earnings that are substantially better than peers, we reiterate 'BUY'. We are increasing TP to INR2,993/3.4x BV FY26E from INR2,625. Muthoot is confident about maintaining yield and growth," noted Nuvama in its report.

Muthoot Finance Q1 Result Recap

Muthoot Finance's net consolidated profit (attributable to owners of the company) increased nearly 73% on a year on year (YoY) basis to Rs 2016.2 crore in the June quarter of FY26 against Rs 1,164 crore in the June quarter of FY25. The company had reported a net profit of Rs 1,477.6 crore in the March quarter of FY25.

The company reported the highest ever consolidated loan asset under management (AUM) of Rs 1,33,938 Crores, after increasing by 37% on a year on year basis. Additionally, its gold loan asset under management jumped by 40% on a year on year basis to Rs 1,13,194 crores.