InvestorQ : After the Mar-20 results, is Muthoot Finance a stock worth buying?
diksha shah made post

After the Mar-20 results, is Muthoot Finance a stock worth buying?

Answer
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Dilmini Mercia answered.
4 months ago


You can surely look to buy Muthoot Finance if you have a long term view. In the short term, most of the good things about the stock may be priced in already. Muthoot net profits were up by 51% at Rs.3169 crore while its total assets under management or AUM registered a growth of 22% at Rs.46,871 crore. It reopened most of its branches only on April 20 so there was some lockdown effect but that was minor in the March quarter. Muthoot will continue to grow its gold loan business by 15% and sees a huge opportunity in the post-COVID scenario for gold loans. Muthoot Chairman has also affirmed that loans may be hard to come by in the post COVID scenario due to EMI moratorium constraints and therefore the gold loans would offer them the best alternative at this point of time.