India’s Muthoot Finance surges to all-time high on hopes of stronger growth

Shares of India’s Muthoot Finance jumped as much as 11.5% to hit an all-time high on Thursday after robust loan growth cemented investor confidence in the company’s ability to sustain industry-leading growth.

Muthoot’s shares looked set to gain the most since June 2020, and were last up at a record 2,760.80 rupees.

On Wednesday, it reported a bigger-than-expected 90% surge in first-quarter profit, aided by a 42% jump in loan assets under management as prices of the precious metal soared.

Jefferies analysts raised Muthoot’s fiscal 2026 earnings per share estimates by nearly a fifth, citing stronger loan growth and lower credit costs.

Analysts at Nuvama said Muthoot’s earnings were “substantially better than peers,” adding that company is confident of maintaining growth.

Muthoot Finance shares were trading up 10.2% as of 9:54 a.m. IST and were the top percentage gainer on the Nifty Financial Services index.

At least two analysts upgraded their rating on the “buy” rated stock, while 10 raised their price target, according to data compiled by LSEG.

The stock is up about 30% so far this year, outperforming rival IIFL Finance’s 9% rise, but trails Manappuram Finance’s 40% jump.