Muthoot Finance Share Price: After 87% profit in Q2, NBFC stock hits 52-week high — Buy, Sell or Hold?

Muthoot Finance Share Price: Muthoot Finance saw a sharp rally in its share price on Friday after reporting a strong set of numbers for the second quarter of FY26. The stock surged around 10 per cent, briefly touching a new 52-week high of Rs 3,730.30 during the day.

The rally came after the NBFC gold loan major posted robust profit growth and healthy operational performance, prompting several brokerages to raise their target prices.

Muthoot Finance Q2 Results

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The company reported a net profit of Rs 2,345 crore, an 87 per cent year-on-year increase compared to Rs 1,251.1 crore recorded in the same quarter last year. Total income rose sharply to Rs 6,461 crore, up from Rs 4,126 crore a year ago.

Interest income also increased significantly to Rs 6,304 crore, compared to Rs 4,068 crore in Q2 FY25. On the cost side, expenses grew to Rs 3,309 crore against Rs 2,418 crore in the previous year.

Muthoot Finance’s gold loan business continued its strong momentum. The company reported a Rs 11,723 crore increase in gold loan AUM, indicating 10 per cent quarter-on-quarter growth and sustained demand for gold-backed credit.

The strong quarterly performance led to positive commentary from global brokerages, each raising its target price and maintaining bullish or positive ratings.

Muthoot Finance Share Price Target

Morgan Stanley maintained its Overweight rating and raised its target price from Rs 3,660 to Rs 4,050, implying an upside of around 8.7 per cent from the current market price (CMP Rs 3,724). The brokerage noted strong growth, improved margins, and better asset quality trends.

CLSA maintained an Accumulate rating and increased its target price from Rs 3,600 to Rs 4,000, reflecting an upside of nearly 7.4 per cent. It highlighted that Q2 NII beat estimates by 11 per cent, while PPOP and PAT beat expectations by about 23 per cent.

CLSA expects a 25 per cent AUM CAGR over FY25–27, supported by expanding NIMs and better operating leverage.

Jefferies reiterated its Buy call and raised its target price from Rs 3,860 to Rs 4,000, implying an upside of about 7.4 per cent. The firm noted that PAT grew ahead of its estimates due to strong NII and income writebacks from NPA recoveries. Jefferies expects 36 per cent EPS CAGR and 24 per cent+ ROE over FY26–27.

Bernstein maintained its Outperform rating and raised its target to Rs 3,400 from Rs 2,700. This suggests a downside of around 8.7 per cent from current levels, as the new target is below CMP.

Bernstein acknowledged strong AUM growth and margin expansion but appears more conservative in its valuation outlook.

Muthoot Finance Share Price History

On the stock performance front, Muthoot Finance has delivered strong returns across time periods. It gained 15.49 per cent in one week, 15.93 per cent in one month, and 64.86 per cent over six months.

The one-year return stands at 109.84 per cent, while its three-year and five-year returns are 242.78 per cent and 214.02 per cent, respectively.

The company has a full market capitalisation of Rs 1,49,516.90 crore and is part of the BSE 200 Index. It operates in the Non-Banking Financial Company (NBFC) sector.