Muthoot Finance Plunges 11% Despite Strong Profit; Brokerages See Upside

• Muthoot Finance shares dropped over 11% on Friday, marking its biggest single-day decline in over a year, despite strong December quarter results.
• The company reported record loan assets under management (AUM) of ₹1,64,720 crore (up 48% YoY) and profit after tax (PAT) of ₹7,209 crore (up 84% YoY) for the nine months ended December 31, 2025.
• Jefferies maintained a 'Buy' rating with a target price of ₹4,750, citing strong gold prices, LTV buffer, and easing branch expansion norms to support AUM growth.
• CLSA retained an 'Outperform' rating with a target price of ₹4,600, highlighting broad-based earnings strength and loan growth exceeding estimates.
• Brokerages noted strong profitability, operating leverage, and supportive gold prices as positives, while flagging a sequential decline in gold tonnage and customer acquisitions as concerns.