Story thread · 4 reports / 2 sources

Higher funding costs, rising competition may weigh on Muthoot Finance

economictimes.indiatimes.com · 6dShare

Mumbai: Shares of Muthoot Finance have fallen by nearly 8% in two trading sessions since August 1 after the country's largest gold loan company reported a decline in net interest margin and loan yields for the June quarter. Yields are likely to remain under pressure this year due to elevated borrowing costs and increasing competition from banks and finance companies.Earnings growth in FY27 will depend on loan book expansion rather than margin expansion unlike in FY26 when yields benefited from several one-off factors.Read more: Closing auction keeps traders on edge as divergence persistsThe stock has lost around 19% since May 14 when the company declared the March quarter result. Given the pressure on profitability, the stock may remain range bound in the short term though it trades at a slightly lower Price-to-Book (P/B) of 2.9 compared with the three- and five-year average multiples of 3.2 and three respectively.132882600The management expects gold loan yields to stabilise at around

First report: Muthoot Finance share price: why this stock fell 11% today; fresh targets — businesstoday.in, 8d