Muthoot Finance Share Price: The market has recovered to a great extent and the equity benchmark index Nifty 50 has again reached a new high after about 13 months. During this period, some other shares also made a splash, such as Muthoot Finance. Shares of Muthoot Finance doubled in about a year. The September quarter was also a blockbuster for the company. However, if we talk further, the brokerage firm Geojit BNP Paribas believes that those who were positive with it have joined this bullishness, so now the brokerage firm has advised to sell it and the target price fixed is more than 10% downside from the current level. Its shares had closed at ₹3743.05 on Friday, November 28, down 0.44% on BSE.
Why did the brokerage firm advise Muthoot Finance to sell?
Muthoot Finance is the largest NBFC in the country in terms of distributing gold loans. It has more than 7,524 branches across the country. Apart from gold loan, it also provides many other types of services like loans, insurance, money transfer services and gold coin sales. In the second quarter of the current financial year 2026, July-September 2026, the company’s consolidated loan AUM increased by 42% year-on-year to reach ₹ 1,47,673 crore. This was supported by the 45% growth of gold loans. With a value of ₹1,24,918 crore, gold loans now account for 84% of its AUM.
Management has raised gold loan growth guidance to 30–35% for FY26. Muthoot Finance has 209 tonnes of gold as collateral ensuring strong security and the average portfolio LTV is 57%. There is concern regarding fluctuations in gold prices but the company is maintaining a healthy margin of safety of about 43%, which has reduced the credit risk.
Despite such strong performance, domestic brokerage firm Geojit BNP Paribas has adopted a cautious approach regarding Muthoot Finance. The brokerage firm says that after the strong gold loan franchise and favorable industry, competition is now increasing in this segment which may put pressure on NIM (Net Interest Margin). Also, the recent rise in its shares has taken all its positives into account and the valuation is at a record high. For this reason, the brokerage firm has again given sell rating and fixed the target price at ₹ 3,350.
How were the shares in one year?
Shares of Muthoot Finance were at ₹1896.30 last year on November 28, 2024, which is a one-year record low for its shares. From this low, it jumped 100.86% in one year to reach ₹3808.95 on 25 November 2025, which is a record high level of one year for its shares.
Disclaimer: The advice or opinions expressed on Moneycontrol.com are the personal views of the expert/brokerage firm. The website or management is not responsible for this. Moneycontrol advises users to always seek the advice of a certified expert before taking any investment decision.