ICICI Direct has given Hold recommendation for Muthoot Finance with a target price of Rs. 1300 in its research report issued on Aug 15, 2022

ICICI Direct’s research report on Muthoot Finance

Muthoot Finance is a leading gold financier in India with standalone AUM of Rs 56689 crore as on June 2022. It has a large footprint across India with 4617 gold lending branches • The company also has a presence in other lending segments like microfinance, housing, vehicle finance via its subsidiaries.

Outlook

We downgrade the stock from BUY to HOLD rating. We value the core business (gold loan) at ~2.1x FY24E ABV and assign Rs 31 to subsidiaries, maintaining our target price at Rs 1300 per share.

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