Share of Muthoot Finance rose 9 per cent to hit an all time high of Rs 1,537.20 after the company announced its earnings for the quarter ended March 2021.
The stock opened 1.74 per cent higher at Rs 1438.65 against the previous close of Rs 1414.00 on BSE. Market cap of the firm rose to Rs 59,902.55 crore.
The share has delivered 60 per cent returns in the last 12 months and risen 22 per cent since the beginning of this year.
The share of Muthoot Finance stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.
For FY21, the company posted a 23 per cent jump in standalone profit at Rs 3,722 crore against Rs 3,018 crore in the previous year.
The company reported a standalone profit of Rs 996 crore in Q4, up 22 per cent on a Y-o-Y basis. Profit in the year-ago period stood at Rs 815 crore.
Loan Assets grew 26 per cent to Rs 52,622 crore for the quarter ended March 2021 as against Rs 41,611 crore in March 2020. During the quarter, gold loan assets increased by Rs 2,304 crore.
"During the last decade since our IPO, we believe that we have been able to create significant value additions for all our stakeholders at different levels. Being the market leader in our industry we are resolutely confident of continuing our journey in this direction in future too," said George Jacob Muthoot, Chairman.
"Following our track record of consistent dividend payout, we declared a dividend of Rs. 20 per share for the financial year 2020-21 involving a total payout
of Rs. 802 crore in April 2021," he added.
Motilal Oswal expects the company to deliver 15% loan growth in the medium term. It has increased the FY22E/23E estimate by 3-4%.
"With an AA+ rating, the cost of funds is likely to decline. This should mitigate yield pressure if any. RoA/RoE is likely to remain robust at 6.5%/25% over the medium term," the brokerage house said.
"Despite the 10-12% decline in gold prices, it managed to grow the loan book by 4% QoQ, which is encouraging. Even in the second COVID wave, loan demand is likely to remain high as customers' cash flows will be stressed," it added.
Investec believes that with the recent credit rating upgrades and a strong liquidity position, Muthoot is well placed to gain market share.
The brokerage house has a 'Buy' rating on the stock with a target price of Rs 1620 per share.
CRISIL Ratings has upgraded its ratings on the long-term debt facilities of Muthoot Finance Limited from 'CRISIL AA/Positive' to 'CRISIL AA+/Stable'.
In April 2021, the company completed the 25th Public Issue of Non-Convertible Debentures raising Rs.1,700 crore.