Muthoot Finance: Gold financing takes on more shine, stock reasonably priced
Given the secured and high return ratio business, we see re-rating of Muthoot Finance ahead
June 07, 2021 / 03:56 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Silencing the naysayers worried about the impact of falling gold prices on the fortunes of gold financing companies, Muthoot Finance (CMP: Rs 1415 Market Cap: Rs 56,765 crore) has ended the year (FY21) on a strong note. While its small non-gold businesses faced challenges, gold financing surged even in the face of falling gold prices in Q4 and the asset quality held up extremely well. Although the second wave of the pandemic threatens to disrupt activities for about a...