Edelweiss has maintained buy rating on Muthoot Finance, in the long term with target price of Rs 692. The stock jumped 4.37% to Rs 610.90 on Monday while the BSE
Sensex closed 163.68 points up at 37,145.45.
Company Financials
For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 2067.67 crore, down -.81 % from last quarter sales of Rs 2084.64 crore and up 15.93 % from last year same quarter sales of Rs 1783.47 crore. The company has reported net profit after tax of Rs 563.31 crore in the latest quarter.
Investment Rationale
Muthoot’s operations in Kerala have been disrupted following employee protests. The impact will be contained given the diversified presence, said the brokerage. A recent sharp uptick in gold prices will also have tailwinds intact for 95% of the company’s operations and growth might settle around 15-17%, added the brokerage.