Muthoot Finance spurts after clarification

Muthoot Finance rose 6.36% to Rs 374 at 13:45 IST on BSE, reversing early losses following the company's clarification that it does not expect any adverse findings against it by income tax department.

The company issued the clarification on Sunday, 7 August 2016.

Meanwhile, the BSE Sensex was up 110.97 points, or 0.40%, to 28,189.32.

On BSE, so far 2.68 lakh shares were traded in the counter, compared with average daily volume of 1.17 lakh shares in the past one quarter. Trading was volatile on the counter. The stock rose 7.73% at the day's high of Rs 378.85 so far during the day. The stock fell 2.18% at the day's low of Rs 344 in early trade. The stock hit a 52-week high of Rs 395.80 on 1 August 2016. The stock hit a 52-week low of Rs 152 on 23 September 2015. The stock had outperformed the market over the past 30 days till 5 August 2016, rising 26.52% compared with 3.22% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 82.58% as against Sensex's 11.30% rise.

The large-cap company has an equity capital of Rs 399.05 crore. Face value per share is Rs 10.

The officials of income tax department carried out a search at various premises of the company which commenced at 9:00 am on 5 August 2016 and continued till 7:00 am on 7 August 2016. The company said it cooperated with the investigation and has provided information and clarification sought by the officials. The firm said it is confident that the income tax department would have found during the search proceedings that books of accounts of the company have been maintained satisfactorily. The company clarified that it is not expecting any material adverse findings against the company by income tax department.

In a separate announcement on Saturday, 6 August 2016, Muthoot Finance said that it is the highest tax payer in Kerala. It paid Rs 524 crore during 2015-2016 as per audited financial statements for the year ended 31 March 2016.

Muthoot Finance's net profit rose 47.56% to Rs 270.27 crore on 13.85% increase in total income to Rs 1300.82 crore in Q1 June 2016 over Q1 June 2015.

Muthoot Finance is the largest gold financing company in India in terms of loan portfolio.

Powered by Capital Market - Live News