Why Are Muthoot Finance Shares Rising Today? As Q2 Result Turns Spotlight On Gold Lender, Check Target Price

Muthoot Finance Share Price Today: Muthoot Finance shares zoomed significantly during the morning trading hours on Friday, a day after the company announced better-than-expected second-quarter results for the financial year 2025-26.

Muthoot Finance shares were trading 9.33% higher at Rs 3707.5 per share on BSE, with a market capitalisation of Rs 1,48,844.44 crore at 9:55 am. Muthoot Finance shares had touched an all-time high of Rs 3,725 per share on Friday.

Muthoot Finance Q2 Result Recap

Muthoot Finance reported a whopping 87% year-on-year surge in its net profit for the September quarter of FY 26 to Rs 2,345 crore. The gold lender had reported a net profit of Rs 2,046.30 crore in the previous quarter of same financial year.

The company's net interest income (NII) or core income also surged around 58.5% from the same quarter last year to Rs 3.9992 crore. The company had reported its highest asset under management (AUM) as well.

The company's consolidated loan AUM surged around 42.4% from last year to Rs 1.47 lakh crore, the highest ever in the company. As the gold prices increased at a record level this year, Muthoot Finance saw a significant surge in its gold loan AUM as well.

Muthoot Finance Share Price Recommendation

Margin expansion and loan growth recovery sector helped the company to improve its net profit and interest margins during the quarter under review. Muthoot Finance's strong operating performance in the second quarter was driven by strong gold loan growth, sequential improvement in GS3 due to NPA recoveries, increase in gold tonnage and decline in the CoF, according to Motilal Oswal.

The brokerage has given a 'Neutral' rating for the stock with an increased target price. "With a favorable demand outlook for gold loans, driven by the limited availability of unsecured credit, the company is well-positioned to maintain its healthy loan growth momentum. Reiterate our Neutral rating with a revised TP of INR3,800 (based on 3.2x Sep'27E BVPS)," noted the brokerage in its report.

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