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Jefferies raises Muthoot Finance price target to INR3,860 on gold rally

Published 17/10/2025, 11:34
Jefferies raises Muthoot Finance price target to INR3,860 on gold rally
GC
-0.29%
MUTT
-0.37%

Investing.com - Jefferies has raised its price target on Muthoot Finance Ltd (NSE:MUTH) to INR3,860.00 from INR2,950.00 while maintaining a Buy rating on the stock.

The significant increase in the price target comes as gold prices have rallied sharply, rising more than 30% since June, which Jefferies expects will boost loan growth for the financial services company.

Jefferies forecasts a 25% compound annual growth rate (CAGR) in assets under management (AUM) for Muthoot Finance over fiscal years 2025-2027, with net interest margins expected to expand due to lower rates.

The firm also anticipates credit costs will decrease from their fiscal year 2025 peak as the drag from Muthoot’s non-gold portfolio diminishes, leading to upward revisions of 9-13% for FY26-27 earnings estimates.

Jefferies now projects a 34% earnings per share CAGR and return on equity exceeding 24% over FY25-27, with higher gold prices and positive earnings revisions expected to support premium valuations for the stock.

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