Analysts have raised their price target for Muthoot Finance from ₹2,763 to ₹2,870, citing improved revenue growth forecasts, even though there is a slight dip in projected profit margins and a marginally higher discount rate.
What's in the News
- Muthoot Finance approved alteration of its Articles of Association. (Key Developments)
- A board meeting on August 13, 2025, is scheduled to consider and approve unaudited financial results for the quarter ended June 30, 2025, and to approve an additional equity infusion of INR 500 Crores in Muthoot Money Limited, its wholly owned subsidiary. (Key Developments)
- A board meeting on July 28, 2025, approved the appointment of Mr. Thomas Kokkoth as Chief Risk Officer effective August 06, 2025. (Key Developments)
- The board also recommended increasing the number of directors to 16 at the upcoming Annual General Meeting, with corresponding changes to the Articles of Association. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target increased from ₹2,763 to ₹2,870, reflecting improved outlook.
- Discount Rate edged up marginally from 16.55% to 16.56%, which implies a slightly higher risk perception.
- Revenue Growth forecasts rose from 11.66% to 12.92%, suggesting optimism around future performance.
- Net Profit Margin estimate declined from 51.49% to 50.39%, indicating expectations of modestly reduced profitability.
- Future P/E ratio increased from 18.62x to 19.11x, indicating a higher valuation placed on anticipated earnings.
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