The actions of Mushot Finance fell 5 percent despite the strong performance of the fourth quarter due to the RBI regulations project in the value rules to value (LTV) that shake the feeling of investors.
However, according to the favorable demand perspective for gold loans, the company is well positioned for Mintain its impulse of loan growth.
The draft of the guidelines, if implemented, will have a short -term impact on the LTV or Mushot Finance disbursement and its NBFC of torque, according to Motilal Oswal. “Until the RBI publishes the final guidelines of gold loan, the growth perspective of gold loans will continue to be uncertain,” said the report.
“If this rule does not change, it will push the borrowers to go to money lenders and will be a setback for the system,” said Institutional Equities.
The performance of the fourth quarter was driven by strong growth of gold loans, assistant for an increase in gold tonnage and the decent additions of customers.
Its independent PAT Q4 increased 43 percent to ₹ 1,508 million rupees against ₹ 1,056 million rupees in the fourth quarter of fiscal year 2014. The PAT for Fy25 was ₹ 5.201 million rupees, 28 percent more than ₹ 4,050 million rupees in the fiscal year 2014. The gold lens reported a robust growth of AUM Net interest (NIM) and a lower credit cost QOQ.
Motilal Oswal marked the urban in the short term in the stock and valuations until clarity materializes from the final gold loan guidelines. The brokerage has reiterated the neutral rating at an objective price without changes of ₹ 2,400.
Given the constant performance of the company and the firm gold rate, Nuvama has preserved the purchase rating at an increased target price of ₹ 2625 of ₹ 2,550 before.
Global Brokerage Jefferies has assigned a purchase call to ₹ 2,660 per share, stating that the highest prices of gold would cushion the drag of the potentially more tight LTV standards.
Bernstein has a higher performance rating at an objective price of ₹ 2,500 and Morgan Stanley assigned weight equal to ₹ 2,400.
The shares quoted 5.25 percent lower in the EEB A ₹ 2,143.95 at 10.46 am, after reaching a minimum of ₹ 2,139.20.
Posted on May 15, 2025
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