Muthoot Finance Soars 11% to Record Highs on Stellar Q1 Earnings—Gold Loans Shine
Gold-backed lender Muthoot Finance just flexed its Q1 muscles—sending shares rocketing past previous all-time highs. The 11% single-day surge proves traditional finance still has some fight left... if it's chained to precious metals.
Bullion-powered profits
While fintechs chase metaverse mortgages, Muthoot's old-school collateral game delivered knockout numbers. The market's response? A stampede of institutional buying that'd make a crypto whale blush.
Not your grandfather's gold loan
Behind the double-digit rally lies a brutal truth—when fiat wobbles, Indians still sprint to pawn shops rather than stablecoins. The company's digital transformation gets less press than its vaults, but hybrid gold/tech strategies are quietly printing money.
Closing thought: In a world of algorithmic stablecoins and tokenized assets, sometimes the best hedge against volatility is... actual gold. How delightfully archaic.
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The non-gold business currently accounts for 13–14 per cent of the portfolio, and the company targets to maintain this share in the 15–20 per cent range going forward.
Brokerages have broadly been positive on the stock, increasing target prices, taking cues of strong gold loan growth and asset quality improvement on the back of recoveries from the NPA pool. Global brokerage Morgan Stanley upgraded the stock to overweight at an increased target price of ₹2,920. Jefferies maintained buy at a raised target price of ₹2,950.
Domestic brokerage Motilal Oswal has maintained neutral rating at unchanged target price of ₹2,790. It said that the NBFC delivered healthy performance, even after considering the one-offs in interest income. “ With a favourable demand outlook for gold loans driven by the limited availability of unsecured credit, the company is well-positioned to maintain its healthy loan growth momentum,” it said.
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Motilal added that it believes that the valuations are rich for the DEEP cyclicality in its gold loan growth, which will remain vulnerable to any volatility in gold prices.
Muthoot Finance board had approved an additional equity infusion of ₹200 Crores in Muthoot Homefin (India), and ₹500 Crore in Muthoot Money, wholly-owned subsidiaries of the company.
At 11.46 am, the stock traded 11 per cent higher at ₹2,787.05, hitting a fresh high of ₹2,799 against the previous close of ₹2,510.75. On the NSE, it hit a 52-week high of ₹2,800.
Published on August 14, 2025
