Muthoot Finance drops on profit taking

Meanwhile, the BSE Sensex was up 22.49 points or 0.11% at 19,928.90.

On BSE, 50,000 shares were traded in the counter as against average daily volume of 1.27 lakh shares in the past one quarter.

The stock hit a high of Rs 228.40 and a low of Rs 223.55 so far during the day. The stock had hit a record high of Rs 246 on 3 January 2013. The stock had hit a record low of Rs 105.70 on 25 May 2012.

The stock had outperformed the market over the past one month till 14 January 2013, surging 13.51% compared with the Sensex's 3.05% rise. The scrip had also outperformed the market in past one quarter, jumping 22.68% as against Sensex's 6.59% surge.

The mid-cap company has equity capital of Rs 371.71 crore. Face value per share is Rs 10.

Shares of Muthoot Finance had gained 4.9% to settle at Rs 226.90 on Monday, 14 January 2013, after the company reported Q3 results during trading hours.

Muthoot Finance's net profit rose 7.6% to Rs 270.07 crore on 10.9% growth in total income to Rs 1365.26 crore in Q3 December 2012 over Q3 December 2011.

Muthoot Finance's capital adequacy ratio (CAR) improved to 19.5% as on 31 December 2012, from 18.33% as on 31 December 2011.

The return on average retail loans declined to 4.37% in Q3 December 2012 from 4.58% in Q3 December 2011. Return on average equity declined to 30.22% in Q3 December 2012 from 36.65% in Q3 December 2011.

Muthoot Finance said it has obtained approval of shareholders through postal ballot to raise the public holding of its shares to 25% from the current 19.88% so as to satisfy the Sebi stipulation of a minimum public holding of 25% by May 2014. This dilution may be through any of the modes approved by Sebi from time to time in one or more tranches or in combination of including institutional private placement, the company said. The company has not decided on the timing of the dilution, Muthoot added.

Headquartered in Kerala, Muthoot Finance is the largest gold financing company in India in terms of loan portfolio. The company provides personal loans secured by gold jewellery, or gold loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements. The company has branch network of 3,914, spread across 21 states and 4 Union Territories.

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