Muthoot Finance board will meet on July 18 to consider the proposal for stock split. The ratio is not yet clear but the market is veering towards a likely 1:1 stock split. While in terms of value, this is unlikely to make any impact on the company value, it is likely to bring the stock into a more acceptable trading range. This could help the stock at higher levels.

Muthoot also sees a huge growth potential for the growth of the gold loan business and is looking to create a stock currency as well as raise funds in the market. Muthoot is also looking to increase the borrowing powers of the company from the existing level of Rs.50,000 crore to Rs.75,000 crore. Shares were quoting at about Rs.1125.