The new assigned target price reflects a healthy 19% side of the stock on Wednesday with its closed price.
In addition, after the results, 11.3% of the stock at BSE at BSE at its new 52-week high.
Here is a detailed appearance on what these brokerage companies said:
Jefferies: Buy | Target Price: 2,950 rupees
Jefferies maintained its ‘buy’ rating on Muthoot Finance while its target price is Rs 2,660 to Rs. By increasing up to 2,950, the stock has evaluated on the estimated book value of September 2027. Brokerage released 90% Yoi growth in the company’s single profit for Rs 2,046 crore, which is run by strong gold loan growth, margin expansion and NPA recovery.
According to Jefferies, the operation of Muthoot Finance’s Q1 benefited from a convenient macro environment for gold loan, with AUM offers 42% YO and Loan-to-value (LTV) for further growth. The margin improved sequentially, the net interest margin (NIM) increased 12.2%with 88 basis points. 1 billion of asset reconstruction companies, and Rs. Billion. This assistance was received by the billion billion dollars.
Brokerage also noted that when the loan is large-rate, about half the OROW is floating and mostly connected to the MCLR, which indicates some legs in the introduction of costs. Jefferies expect Muthoot to deliver CAGR 23% with equity (ROE) more than 21% over 26-228 CAGR, supported by steady loan growth, controlled credit costs and limited loan loss.
Nuvama: Buy | Target Price: 2,993 rupees
Nuwama has also reaffirmed his ‘Bye’ recommendation, which has increased its target price from Rs 2,625 to Rs 2,993 based on an estimated book value of 3.4x FY 26. Brokerage described Muthoot’s Q1 FY26 as “strong all -round bit”, pushing allies towards growth, profitability and wealth quality matrix significantly.
Nuvama pointed out that the unified AUM increased by 10% QQ and 42% U, in which the gold AUM alone increased by 40% yo and 10% QQ. The margins enlarged 88 basis points sequently, assisting by the recovery of both NPL settlements and the recovery from both arc transactions. Except for the recovery, the yield remains stable, unlike the reduction between the other lenders in the field.
The broker also published a significant reduction in the company’s efficient cost management and credit costs during the quarter. The sale of the arc has directly improved the yield of 3.5 billion rupees, including Rs 1 billion. In addition, the growing contribution of subsidiaries in the gold loan business is expected to support the overall velocity. Nuvama added that management believes in raising the level of yield and growth.
Muthoot Finance Q1 Results
Muthoot Finance recorded a unified net profit of Rs 1,974 crore in the quarter ended June 30, 2025 on Wednesday, which was 65% higher than Rs 1,196 crore in the corresponding period last year.
In gradually, the profit of Rs 1,444 crore in Q4FY25 increased 37%. Under the Management (AUM), the consolidated loan properties of the NDER rally reached Rs 1,33,938 crore, which represents an increase of 37% and 10% over the previous quarter.
The company’s main business segment, gold loan AUM increased 40% to Rs. 1,13,194 crore, which today marks its highest annual growth in this segment.
The company also reported other operational highlights during the quarter, with Rs. 1 Trillion Market Capitalization Milestone, opening 22 new branches, and winning six awards in E4M Golden Mix, such as the Golden Category Award for the Best Integrated TV campaign, and its ‘Sunari Soch’ season 3 campaign for the best use on TV on TV.
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