Muthoot Finance Q3 Review - Core Business Continues To Support Growth: Prabhudas Lilladher
Gold jewelry sits on a digital scale during the processing of a customer’s gold loan application at their home in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Muthoot Finance Q3 Review - Core Business Continues To Support Growth: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

Defying pandemic challenges and pertinent competition in gold loan market, Muthoot Finance Ltd. recorded robust loan and stable asset quality performance.

What impressed us more is that not just the gold price comfort but gold loan traction (32%YoY/7%QoQ growth; 2%QoQ tonnage growth) was also supported by -

  1. 3.88 lakh new customer addition
  2. 25 new branch addition (2% QoQ growth in network).

Such fundamental growth would propel gold loan compound annual growth rate to 18% over FY21-23E.

Asset quality stood stable with the company beefing up provisions to Rs 5.9 billion (five times increase QoQ) despite no alarming signals ahead.

Click on the attachment to read the full report:

Prabhudas Lilladher Muthoot Finance Q3FY21 Result Update.pdf

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