Prabhudas Lilladher: Initiating Coverage On Muthoot Finance - A Paragon Of Gold Lending  
An employee counts Indian rupee banknotes inside jewellery store  in Mumbai, India (Photographer Dhiraj Singh/Bloomberg)

Prabhudas Lilladher: Initiating Coverage On Muthoot Finance - A Paragon Of Gold Lending  

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

Muthoot Finance Ltd. is a market leader (18% market share) and proxy play on gold financing market in India.

The company carries robust capital (tier-I of 24%) and maintains low leverage(four times) and comes at reasonable valuations at 2.2 times price to book value (FY23E).

We expect the company to maintain market leadership in gold lending underpinned by pricing power, improved productivity and insulation from underlying collateral price fluctuations.

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Prabhudas Lilladher Muthoot Finance Initiating Coverage.pdf

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