13 Feb 2026, Fri

Profit doubled, yet Muthoot Finance shares are in bad shape with a fall of 11%.

Muthoot Finance Share: Shares of NBFC Muthoot Finance Ltd, which provides loans against gold, are witnessing a decline today. On Friday, February 13, shares of Muthoot Finance fell by about 11.33 percent. Whereas the interesting thing is that in the third quarter of the business year 2025-26, there has been a jump of 95 percent in the net profit of the company.

At 10:07 am on Friday, Muthoot Finance shares were seen trading at Rs 3608 per share with a fall of 11.33 percent on BSE. The stock fell to an intraday low of Rs 3576.60 per share within thirty minutes of the start of trading. Even though the shares of this company with a market cap of Rs 1,44,849.83 crore are seeing a decline today, the brokerage still has unwavering faith in it.

What does the brokerage have to say?

Motilal Oswal has maintained ‘buy’ rating on Muthoot Finance stock and has kept its target price at Rs 4500 per share. “With its ability to deliver gold loan growth and best-in-class profits in the industry, MUTH is one of the best franchises for gold loans in the country. We maintain our ‘Neutral’ rating on the stock with a target price of Rs 4500,” the brokerage said in its report.

Meanwhile, Nuvama has maintained its ‘Buy’ rating on the stock and has a target price of Rs 4700 per share. Nuwama said in its report, “Considering Muthoot’s better and stronger earnings than others and its ability to protect loan yields from increasing competition, we are maintaining ‘BUY’ rating.” With this, the brokerage increased its target price to Rs 4700 from Rs 4000 earlier. Nuwama says that the demand for gold loans from low-income borrowers will remain strong. Regulator Gold Finance Is supporting and now relaxation has been given in opening new branches.

Amazing performance in December quarter

In the October-December quarter of the business year 2025-26, the profit of Muthoot Finance almost doubled to Rs 2656 crore. The main reason for this is the record high interest amount received on gold loan. It had earned a net profit of Rs 1363 crore in the December quarter last year. During this period, its operational revenue increased by 64 percent year-on-year to Rs 7243 crore.

Net interest income (NII) of Muthoot Finance increased by 63 percent to Rs 4467 crore in the December quarter. At the same time, its interest income in the same quarter last year was Rs 2721. By December 31, 2025, its consolidated loan assets under management (AUM) reached an all-time high of Rs 1.48 lakh crore, which is 51 percent more than last year.

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