Muthoot Capital initiates IRDAI Corporate Agent registration; stock up 5%

The uptick in the stock price came after Muthoot Capital announced that the board has approved the initiation of Registration as Corporate Agents with IRDAI

Muthoot Capital stock rises: Shares of non-banking financial comapny (NBFC) Muthoot Capital Services surged as much as 5.19 per cent to hit an intraday high of Rs 332.05 per share on Tuesday. 

The uptick in the stock price came after Muthoot Capital announced that the board has approved the initiation of Registration as Corporate Agents with Insurance Regulatory and Development Authority of India (IRDAI).

In an exchange filing, Muthoot Capital said, “We would like to inform that the Board of Directors of Muthoot Capital Services Limited at its meeting held today i.e., Monday, 24th June 2024, approved the initiation of Registration as Corporate Agents with Insurance Regulatory and Development Authority of India (IRDAI).”

The new line of business belongs to the insurance industry, the company said in a statement.

Muthoot Capital Services Ltd., part of the Muthoot Pappachan Group, operates as a Non-Banking Finance Company (NBFC) authorised by the Reserve Bank of India and publicly listed on the Bombay Stock Exchange. 

Established in 1994, it provides a comprehensive range of financial services, both fund and non-fund based, to retail, corporate, and institutional clients through the extensive branch network of Muthoot Fincorp Ltd. 

The company's offerings include vehicle loans, gold loans, loans against property, bonds, deposits, investment products, advisory services, and more. Additionally, Muthoot Capital Services Ltd. extends loans against property, shares, gold ETFs, SME loans, mortgage loans, leasing & hire purchase loans, and bill discounting.

Financial performance

In the March quarter (Q4FY24), the company reported its highest every profit after tax (PAT) at Rs 122 crore, up 57 per cent on a year-on-year basis (Y-o-Y). 

Its return on assets (ROA) stood at 6.35 per cent in Q4FY24, up 71 per cent Y-o-Y. The company’s new loan addition jumped 9 per cent annually to Rs 1438 crore. Its earnings per share (EPS) in Q4FY24 stood at Rs 74.58.

The 52-week high of the stock is Rs 458 while its 52-week low is Rs 265 per share. 

The market capitalisation of Muthoot Capital is Rs 527.97 crore, according to Bombay Stock Exchange (BSE).

In a separate filing, Muthoot Microfin, a leading microfinance institution in India, announced that it has secured a corporate agent licence from the Insurance Regulatory and Development Authority of India (IRDAI). This would enable it to offer tailored insurance plans to its customer base.

At 12:20 PM, shares of the company were trading 1.69 per cent higher at Rs 321 per share. By comparison, BSE Sensex was trading 0.30 per cent higher at 77,576.43 levels.