Muthoot Finance Q1 Review - Low Risk, High Reward Play: Prabhudas Lilladher
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Prabhudas Lilladher Report
Defying pandemic challenges and pertinent competition in gold loan market, Muthoot Finance Ltd. recorded robust loan and decent asset quality performance.
Notably, despite underlying asset price fluctuations and tepid customer accretion (30% plus QoQ decline in fresh loans from new customers) led by second wave challenges, Muthoot Finance clocked 29%YoY loan growth and maintained sequential steady traction in tonnage movement.
Asset quality marginally deteriorated (Stage-III: 1.2% versus 0.9%: Q4 FY21) with company tripling provisions QoQ largely to tackle subsidiaries book.
Auction value at Rs 370 million (less than 0.1% of gold loans) stands as one of the lowest run-rate.
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