Muthoot Finance share price declines 5% despite stellar Q4 earnings
Muthoot Finance, India's largest gold loan company, delivered a strong performance for the quarter as well as financial year ended March 31, 2025. Despite the strong fundamentals, its shares fell over 5 percent on Thursday, May 15, amid overall weak market sentiment.
For the March quarter (Q4FY25), the Kerala-headquartered firm reported a 22 percent year-on-year increase in consolidated net profit at ₹ 1,444 crore, up from ₹ 1,182 crore in the same quarter last year. This surge was supported by robust growth in its lending portfolio. On a standalone basis, net profit stood at ₹ 1,479 crore, marking a 41 percent rise compared to ₹ 1,050 crore in the year-ago quarter.
The company's consolidated assets under management (AUM) jumped 37 percent year-on-year to ₹ 1.22 lakh crore, while standalone AUM surged 41 percent to ₹ 1.06 lakh crore. Muthoot's gold loan portfolio continued to be its main growth driver, with gold loan AUM reaching an all-time high of ₹ 1,02,956 crore—a 41 percent jump over the previous year.
Annual consolidated profit after tax for FY25 stood at ₹ 5,352 crore, up 20 percent from ₹ 4,468 crore last year. Standalone profit also saw a sharp 28 percent rise to ₹ 5,201 crore. The company reported its highest-ever interest income of ₹ 15,586 crore for the year, reflecting strong customer repayment trends and an expanding lending base.
In terms of operational metrics, Muthoot Finance achieved multiple milestones. The average gold loan AUM per branch touched a new high of ₹ 21.21 crore. The company disbursed ₹ 21,888 crore in gold loans to nearly 18 lakh new customers during the year—both the highest-ever figures in its history. The total gold pledged as security in Muthoot's lockers reached 208 tonnes.
To reward shareholders, Muthoot Finance declared its highest-ever dividend of 260 percent, translating to ₹ 26 per equity share of face value ₹ 10 each.
However, performance from its subsidiaries presented a mixed picture. The group's microfinance arm, Belstar Microfinance, reported a 20 percent decline in AUM to ₹ 7,980 crore, down from ₹ 10,023 crore in the previous year. The subsidiary also saw its annual net profit shrink sharply to ₹ 46 crore from ₹ 340 crore amid industry-wide stress and asset quality concerns.
Despite the exceptional earnings report, Muthoot Finance shares dropped as much as 5.1 percent to ₹ 2,139.20 on the BSE. The stock remains over 12 percent below its 52-week high of ₹ 2,444.65 touched in March 2025. It has gained 35 percent from its 52-week low of ₹ 1,580 hit in June 2024.
On a yearly basis, the stock is still up over 34 percent. But it has struggled in recent months—down around 1 percent so far in May after a 9 percent correction in April. This follows a 12 percent rally in March, a 5.5 percent decline in February, and a 5.7 percent gain in January.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
8 minutes ago
- Business Standard
L&T Finance rallies 3%, hits new high; more steam left in the NBFC stock?
L&T Finance share price today L&T Finance (LTF) shares hit a new high of ₹216.75 today, rising 3 per cent on the BSE in Tuesday's intraday trade amid heavy volumes. The stock price of the non-banking finance company (NBFC) surpassed its previous high of ₹214.80, which it touched on July 23, 2025. In the past two trading days, L&T Finance shares have rallied 7 per cent after S&P Global Ratings revised the NBFC's stand-alone credit rating upward by one notch due to likely improvement in its risk adjusted capital (RAC) ratios. S&P Global believes the fresh capital raising or benefits from lower risk weights due to a reduction in economic risk and the sovereign upgrade bodes well for the NBFC. In the past six months, the market price of L&T Finance has zoomed 60 per cent. S&P Global Ratings on L&T Finance S&P Global Ratings expects India's sound economic fundamentals to underpin growth momentum over the next two to three years. In addition, monetary policy settings, it said, have become increasingly conducive to managing inflationary expectations. The rating agency, therefore, upgraded India to 'BBB/Stable/A-2' from 'BBB-/Positive/A-3'. On L&T Finance, the rating agency said LTF will maintain its strengthened capital levels over the next 12-24 months. "We estimate LTF's RAC ratio will be 15 per cent-20 per cent over the next two years, benefiting from the improving economic conditions in India," it added. Notably, L&T Finance's RAC ratio was 19.7 per cent as of March 31, 2025. "The stable rating outlook reflects our expectation that L&T Finance will continue to benefit from being part of the Larsen & Toubro group. The company's linkages with the strong Larsen & Toubro brand should help solidify its market position, and access preferential funding sources while maintaining a good capital position over the next two years," S&P Ratings said in its rationale. Brokerages on L&T Fin, ratings, share price target LT Finance, according to analysts, remains assertive on reduction in credit cost and improving asset quality in the microfinance institution (MFI) space from H2FY26. The MFIN Guardrails 2.0 will help build quality portfolios in the long term, while having limited impact in the short-term. "On an operational level, the franchise is making significant structural changes wherein new credit underwriting engines have been deployed, targeting prime segments which would ultimately improve the overall quality of the portfolio, resulting in lower credit costs. The company has guided for 20 per cent near-term loan growth, which may inch up to ~25 per cent gradually. It remains committed to its target profitability metrics—while NIMs would come off, opex improvements and lower credit costs will help to offset the impact," according to Mirae Asset Sharekhan. The brokerage firm has reiterated its 'Buy' rating on the stock with a revised price target of ₹240. FY26 will be a year of transformation for L&T Finance, transitioning towards the targeted loan mix and implementing Cyclops in Tractors, personal lending, and SME segments, Motilal Oswal Financial Services said. The brokerage expects LTF to deliver a structural improvement in profitability and RoA from FY27 onwards. It, too, has reiterated a 'Buy' rating on the stock with a target price of ₹250 (based on 2x Mar'27E BVPS).
Hans India
8 minutes ago
- Hans India
BlueStone IPO Makes Dull Debut, 1.3% From Issue Price
BlueStone Jewellery shares made a weak stock market debut today, August 19. The stock listed at ₹510 on NSE, down 1.3% from the issue price of ₹517. On the BSE, it opened at a 1.6% discount. The IPO had raised ₹1,540.65 crore, consisting of ₹820 crore from fresh issue (1.59 crore shares) and ₹720.65 crore from offer for sale (1.39 crore shares). By the close of bidding (August 13), the IPO was subscribed 2.72 times. Price band: ₹517 per share Lot size: 29 shares (₹14,268 minimum retail investment) Allotment date: August 14 Lead manager: Axis Capital Registrar: Kfin Technologies
&w=3840&q=100)
Business Standard
8 minutes ago
- Business Standard
Alembic Pharma shares rise 2% on pulmonary hypertension drug approval
Alembic Pharmaceuticals shares rose 2.3 per cent on Tuesday, August 19, 2025, logging an intra-day high at ₹996.15 per share on BSE. At 11:29 AM, Alembic Pharmaceuticals share price was trading 1.88 per cent higher at ₹991.55 per share. In comparison, the Sensex was 0.27 per cent higher at 81,491.26. Why were Alembic Pharmaceuticals shares rising? Alembic Pharmaceuticals shares were in demand after the company received US Food & Drug Administration (USFDA) final approval for its Abbreviated New Drug Application (ANDA) Macitentan Tablets, 10 mg, used to treat pulmonary arterial hypertension in adults. The drug has an estimated US market size of $1.18 billion for the twelve months ending June 2025, according to IQVIA. This brings Alembic's total USFDA approvals to 224 (203 final, 21 tentative). That apart, the company also received final approval for Tretinoin Cream USP (0.025 per cent). The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD), Retin-A Cream, 0.025 per cent, of Bausch Health US, LLC. Tretinoin cream is indicated for topical application in the treatment of acne vulgaris. According to IQVIA, Tretinoin cream USP, 0.025 per cent, has an estimated market size of USD 94 million for the twelve months ending June 2025. Check List of Q1 results today Alembic Pharmaceuticals Q1 results The company reported a 14 per cent increase in consolidated net profit year-on-year (Y-o-Y) to ₹154.33 crore for the Q1FY26 compared to ₹131.21 crore in the year-ago period. Revenue from operations also rose by 10 per cent Y-o-Y to ₹1,710.72 crore against ₹1,561.73 crore in Q1FY25. About Alembic Pharmaceuticals Alembic Pharmaceuticals, a vertically integrated research and development pharmaceutical company, has been at the forefront of healthcare since 1907. Headquartered in India, Alembic is a publicly listed company that manufactures and markets generic pharmaceutical products all over the world. Alembic's research and manufacturing facilities are approved by regulatory authorities of many developed countries, including the USFDA. Alembic is one of the leaders in branded generics in India. Alembic's brands, marketed through a field force of over 5500, are well recognized by doctors and patients.
