MUTHOOTFIN

Shares Sink 11% After Weak Q1 FY27 Results; Jefferies Cuts Rating to 'Hold'

Summary:

shares plunged nearly 11% after the company posted Q1 FY27 earnings that fell short of market expectations. Consolidated net profit declined 16% sequentially to ₹2,799 crore, weighing on investor sentiment. Jefferies downgraded the stock to 'Hold' and lowered its target price to ₹3,300, citing shrinking net interest margins (NIMs), rising competition in the gold loan segment, and a subdued earnings outlook. Although profit increased 25% year-on-year and assets under management (AUM) surged 43%, these gains were offset by weaker lending yields, pricing pressure, and higher loan-to-value (LTV) ratios. Analysts believe heightened competition and range-bound gold prices could continue to pressure margins and limit earnings growth throughout FY27. Investment in securities market are subject to market risks. Read all the related documents carefully before investing,