Muthoot Finance is a leading gold financier in India with gold loan AUM of ₹ 57531 crore as on March 2022.
Muthoot Finance reported a soft quarter on an overall basis.
Muthoot Finance’s share price has grown ~3x in the past five years. We believe this is a good opportunity to play on the gold finance theme.
We value the core business (gold loan) at ~2.1x FY24E ABV and assign ₹ 38 to subsidiaries to arrive at a target price of ₹ 1300 per share
Apart from Muthoot, in our coverage we also like CSB Bank.
|Particulars||FY20||FY21||FY22||3 Year CAGR_(FY19-FY22)||FY23E||FY24E||2 Year CAGR (FY22-24E)||3 Year CAGR (FY21-FY24E)|
|Q4FY22||Q4FY22E||Q4FY21||YoY (%)||Q3FY22||QoQ (%)||Comments|
|NII||1,720||2,007||1,838||-6.4||1,886||-8.8||Soft operational performance due to margin pressure|
|NIM (%)||12.21||13.80||14.27||-206 bps||13.74||-153 bps|
|Net Total Income||1,758||2,042||1,877||-6.4||1,918||-8.4|
|Staff cost||313||269||276||13.5||255||23.0||Led by increase in employee count|
|Other Operating Expenses||222||209||240||-7.3||197||12.8|
|Provision||-70||35||11||-728.3||89||-178.7||Provision reversals during the quarter|
|PAT||960||1,142||996||-3.6||1,029||-6.7||Subdued topline resulted in PAT de-growth|
|GNPA||1,737||1,882||464||274.3||2,091||-16.9||Asset quality broadly improved; lower auctions QoQ|
|AUM||58,053||59,173||52,622||10.3||54,688||6.2||AUM growth driven by gold loans|
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