Muthoot Finance's stock slides 14% on Friday
Muthoot Finance's stock slid 14% on Friday—the biggest fall in over three years—even though the company posted a massive 95% jump in quarterly profit and strong growth in gold loan business.
Investors wary of whether gains can last
It's a reminder that good results don't always mean happy investors.
Despite record profits and gold loan assets hitting ₹1.40 lakh crore (up 50% YoY), people are worried about whether these gains can last, especially with margins softening and some earnings coming from one-off recoveries.
Slower customer additions, concerns about earnings quality and durability
Even with upbeat reviews from brokerages, investors want to see steady, long-term growth—not just big numbers for one quarter.
Slower customer additions, a small dip in gold pledged, and concerns about earnings quality and durability, softer sequential margins and some one-off recoveries are making folks cautious about Muthoot's future pace.