MUTHOOTFIN

Shares Slide 11% After Q1 FY27 Earnings Miss; Jefferies Downgrades .

Summary:

shares tumbled up to 11% after the company reported a weaker-than-expected Q1 FY27 performance. Consolidated net profit declined 16% QoQ to ₹2,799 crore, prompting a negative market reaction. Global brokerage Jefferies downgraded the stock to 'Hold' and reduced its target price to ₹3,300, citing a sharp decline in net interest margins (NIMs), increased competition, and softer earnings growth prospects. While PAT rose 25% YoY and AUM expanded 43% YoY, higher loan-to-value (LTV) ratios and strong customer additions were offset by lower lending yields and pricing pressure. Brokerages also highlighted intensifying competition in the gold loan segment, which is expected to keep pressure on margins and earnings growth through FY27. Investment in securities market are subject to market risks. Read all the related documents carefully before investing,