Amid the widespread scare of gold loan defaults and extreme stress, Muthoot Finance’s (CMP: Rs 1415 Market Cap: Rs 56,765 crore) Q1 FY22 performance, although subdued, was reassuring. The gold loan portfolio was flat while non-performing loans were higher on expected lines. Though non-gold business showed stress, it was insignificant to move the needle and a comfortable loan-to-value ratio of the portfolio should ensure a decent asset quality even if gold prices correct further. As economic activities gather pace,...