The newly assigned target prices reflect a healthy increase of 19% in the share on Wednesday on Wednesday.
Moreover, after the results, the share rose by 11.3% to its new 52 weeks high from RS 2,793.65 on the BSE.
Here is a detailed look at what these listed companies said:
Jefferies: buy | Target price: RS 2,950
Jefferies has enforced his ‘buy’ rating on Muthoot financing and has increased his target price to RS 2,950 of RS 2.660, so that the share is valued at 2.7x September 2027. The brokerage emphasized the 90% yo -growing of the company in independent profit to RS 2,046 Crore, powered by strong growth of gold loans, margin extension and NPA refunds.
According to Jefferies, the Q1 performance of Muthoot Finance benefited from a favorable macroom environment for gold loans, with AUM rise 42% YOY and Loan-Tot value (LTV) ratios that offer head space for further growth. The margins improved successively, with the net interest rate margin (NIM) with 88 basic points rose to 12.2%. This was helped by recoveries of a total of RS 3.5 billion, including RS 1 billion from Activareconstruction companies, and the rest of non-performing loans. Jefferies expects Muthoot to yield a 23% profit -Cagr with return on equity (roe) of more than 21% compared to FY26-28, supported by stable credit growth, controlled credit costs and limited credit losses.
Nuvama: buy | Target price: RS 2993
Nuvama has also repeated its recommendation ‘Buy’ recommendation and raised its target price to RS 2,993 of RS 2,625, based on an estimated book value of 3.4x FY26. The brokerage described Muthoot’s Q1FY26 as a “strong all -round beat”, which performed much better than colleagues about growth, profitability and activa quality statistics.
Nuvama pointed out that the consolidated AUM 10% QOQ and 42% yoj rose, with gold AUM only 40% yoj and 10% QoQ. The margins expanded consecutively with 88 basic points, helped by restoring both NPL settlements and arch transactions. Even exclusively recovery remained stable, in contrast to the falls that were seen, among other things, lenders in the sector.
The brokerage also emphasized the efficient cost management of the company and a considerable reduction in credit costs during the quarter. RSPAIRS OF RS 3.5 billion, including RS 1 billion from ARC sales, have contributed directly to the revenue improvement. Moreover, the growing contribution of subsidiaries to the Gold Loan Business is expected to support the total momentum. Nuvama added that management remains trust in maintaining both the yield and growth levels in the future.
Muthoot Finance Q1 results
Muthoot Finance reported a consolidated net profit of RS 1,974 Crore for the quarter ending on 30 June 2025, an increase of 65% compared to RS 1,196 crore in the corresponding period last year.
Successfully, the profit rose by 37% of RS 1,444 Crore in Q4FY25. The consolidated loan assets of the lender in Control (AUM) reached a record RS 1.33.938 Crore, which represents an increase of 37% on an annual basis and an increase of 10% compared to the previous quarter.
Gold Loan Aum, an important business segment for the company, grew by 40% JoJ to RS 1.13.194 Crore, which marked the highest annual growth in this segment so far.
The company also reported other operational highlights during the quarter, including crossing the RS 1 trillion market capitalization Milestone, the opening of 22 new branches and winning six prizes at the E4M Golden Mikes, such as the Golden Category Award for the best integrated TV campaign and Silver for the Best Category Award for the Category Awardi Category Awardi Soch ‘Season 3 -campaign.
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((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)
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