Muthoot Finance hits new high, gains 16% in Nov; what's behind the rally?

Muthoot Finance stock hits new high at ₹3,809 on the BSE. Thus far in the calendar year 2025, the stock has zoomed 66 per cent, as against a 8 per cent rally on the Nifty 50.

Muthoot Finance share price today

 

Shares of Muthoot Finance, the gold loan provider, gained 2 per cent to ₹3,687.80 on the National Stock Exchange (NSE) in Tuesday’s intra-day trade on the back of a healthy business outlook. 

 

Meanwhile, on the BSE, the stock hit a new high at ₹3,808.95, as the stock rallied 5 per cent in intra-day deals. In doing so, Muthoot Finance surpassed its earlier high of ₹3,767.70 touched on November 17, 2025.

 

Thus far in the month of November, Muthoot Finance has outperformed the market by surging 16 per cent. In comparison, the BSE Sensex was up 6 per cent during the period.  Further, so far in the calendar year 2025, the stock has zoomed 66 per cent, as against a 8 per cent rally in the benchmark index.

What's driving the gold financier stock price?

 

Muthoot Finance consolidated loan assets under management (AUM) grew 42 per cent year-on-year (YoY) to ₹1.48 trillion in the first half (April to September) of the financial year 2025-26 (H1FY26), driven by robust performance of the company’s core gold loan business. The company’s consolidated profit after tax increased 74 per cent YoY at ₹4,386 crore as against ₹2,517 crore last year.

 

The company’s standalone loan AUM rose to ₹1.32 trillion, up 47 per cent YoY and 10 per cent quarter-on-quarter.

 

The management has upgraded FY26 gold loan growth guidance from 15 per cent to 30-35 per cent. Favourable regulatory changes by the Reserve Bank of India (RBI) for the gold loan sector, higher gold prices and tighter norms for unsecured credit are expected to boost gold loan demand. 

 

The management said the company will continue to expand its non-gold loan portfolio including personal loan, home loan and business loan while maintaining total non-gold loan AUM including microfinance at about 12-15 per cent of the consolidated loan portfolio.

 

The microfinance sector is showing renewed resilience following the implementation of regulatory guardrails and improved underwriting, auguring well for future performance.

 

While the recent industry cuts create a favorable credit environment, with these supportive tailwinds and the company’s continued focus on innovation and services, Muthoot Finance is well positioned to sustain strong growth through financial year 25-26 and beyond, the management said.  CATCH STOCK MARKET LIVE UPDATES TODAY

Motilal Oswal Financial Services view on Muthoot Finance

 

Muthoot Finance delivered a healthy all-round beat in the quarter, even after adjusting for the one-offs in interest income. Gold loan growth remained strong, while asset quality improved on the back of recoveries from the NPA pool. Net interest margins (NIMs) and spreads also expanded during the quarter, driven by higher yields and a decline in CoF.

 

With a favourable demand outlook for gold loans, driven by the limited availability of unsecured credit, the company is well-positioned to maintain its healthy loan growth momentum, according to analysts at Motilal Oswal Financial Services. The brokerage firm reiterated its Neutral rating on the stock with a target price of ₹3,800 (based on 3.2x Sep ’27E BVPS).

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