Now Reading: Muthoot Finance shares rebound 9% from 52-week low on Q2 profit beat
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Muthoot Finance shares rebound 9% from 52-week low on Q2 profit beat
Muthoot Finance shares rebound 9% from 52-week low on Q2 profit beat
The Story in Brief
Shares of Muthoot Finance surged 8.8% from a fresh 52-week low of Rs 2,305 to an intraday high of Rs 2,508 on Monday, 2 November, after the gold-loan lender reported a 27% year-on-year rise in Q2FY27 standalone net profit to Rs 2,977 crore. Net interest income grew 34% to Rs 5,364 crore. The stock traded at Rs 2,471, up 2.6%, while the Nifty gained 1.2% to 23,318.
Managing Director Alexander George Muthoot told CNBC-TV18 that an increase in Stage 2 and Stage 3 loans followed revised RBI gold lending norms replacing bullet repayments with monthly interest, calling it a transitional phase. He said 98% of customers continue to repay. The loan-to-value ratio stood at 72% for Stage 2 and 53% for Stage 3 loans. The company guided for 25% AUM growth in FY27.
Bernstein maintained ‘Outperform’ with a Rs 4,500 target, while Equirus Securities upgraded the stock to ‘Add’ from ‘Reduce’ with a Rs 2,920 target for September 2027, citing valuation comfort after a 40% decline from its 52-week high. Equirus models a higher credit cost of 70 basis points for FY27 versus 20 earlier, flagging elevated delinquencies as a key monitorable.
Indian Opinion Analysis
All three outlets, CNBC-TV18, Business Standard and NDTV Profit, deliver uniform straight reporting on Muthoot Finance’s Q2 results and the stock’s rebound from a 52-week low. Each leads with the share price reaction, the 27% profit jump and management’s explanation that higher delinquencies stem from transitional RBI gold-lending norms, not customer distress. The coverage is near-identical wire-style factual reporting, with no discernible slant toward or against the government or the company. The substantive common ground is that all three flag asset quality as the key monitorable, while brokerages diverge only on price targets: Bernstein at Rs 4,500 and Equirus upgrading to ‘Add’ with Rs 2,920. The balanced reading is that the earnings beat is recognised, but the elevated credit costs and 900% quarter-on-quarter provisions rise in NDTV Profit’s excerpt remain the open risk. Equirus’s upgrade citing valuation comfort after a 40% stock decline provides the concrete next-step reference point.
Coverage: 3 sources, 3 neutral
Sources (3): cnbctv18.com (neutral report), business-standard.com (neutral report), ndtvprofit.com (neutral report)
This brief was synthesised by AI from the 3 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Update, 2 November 2026: this story now draws on 3 sources.
