Muthoot Finance shares have shown a drastic rise in this financial year, enough for Muthoot finance to be included in the MSCI India Index.
Muthoot Finance Shares: An Analysis
The shares for this gold loan lender have surged to about 71%. This gain is the third biggest for the top 200 firms in India. Now standing at a value of USD 7 billion, this company may be included in the quarterly review of the MSCI Index, due in August.
In this period of a pandemic and unusual liquidity crunch, all the other banks are facing a pile of unpaid loans. However, Muthoot Finance managed to grow and avoid any bad loans as the prices of gold are soaring, making it easier for common households to avail of a gold loan.
As researched by Bloomberg, Muthoot Finance shares were already growing by about 50% in the last three quarters, only because of the pace gold loans have been picking.