InvestorQ : How do you see investing in Muthoot Finance? The stock has been downgraded by UBS but the good news is that Muthoot is resuming operations soon? What so I do?
prachi Patwardhan made post

How do you see investing in Muthoot Finance? The stock has been downgraded by UBS but the good news is that Muthoot is resuming operations soon? What so I do?

Answer
user profile image
5 months ago


Let us focus on the positive news first. Muthoot Finance has announced that it will reopen all its branches across India from 20 April. Muthoot has committed to ensure the maximum safety and precautions for its customers, including social distancing norms at all its branches across India. Muthoot has also said that since the government will be monitoring red spots and orange spots to contain spread of COVID-19, the company will abide by the local orders of these districts. All branches are expected to function as per their regular timings while resuming services from 20 April. On the downgrade aspect, it was a downgrade by Moody’s. In fact, Muthoot Finance's Ba2 CFR rating was affirmed but its outlook was changed to negative from stable. However, even Moody’s admitted that the loan against gold portfolio was a natural business hedge for Muthoot at a time when gold prices were consistently moving up. That should still keep the stock attractive and traders and investors can use these dips to accumulate more of the stock.