I’ve talked to so many loan officers at multiple banks and the confusion who will win the gold war (whether the banks will withdraw to pre covid times) is more than ever.
Small Finance Banks have clearly discussed that they will be pursuing GL (read Ujjivan Small Finance Earnings call for this quarter for reference). But at the same time, reading Q4FY23 call of Ujjivan, you can figure out how confident Mr. Davis (smart guy) is about GL for FY24. So that kind of becomes a positive for Muthoot as well if the market itself looks so rosy.
This press release from Muthoot Finance provides an overview of the company’s unaudited financial results for the quarter and half-year ending September 30, 2023. Here are the key points:
Financial Highlights:
Consolidated Loan Portfolio: Increased by 24% YoY to ₹79,493 Crores.
Gross Gold Loan Advance: Reached ₹84,742 Crores, the highest ever in any first half of a year.
Gold Loan Portfolio Growth: Achieved the highest ever growth of ₹5,642 Crores in the first half of a year.
Interest Collection: All-time high at ₹5,447 Crores for any half-year.
Consolidated Profit After Tax: Increased by 24% YoY to ₹2,140 Crores.
Standalone Profit After Tax: Rose by 18% YoY to ₹1,966 Crores.
Branch Expansion: The group opened 331 new branches in H1FY24.
Public Issue: Raised ₹700 Crores through the 32nd Public Issue of Secured Redeemable Non-Convertible Debentures.
Digital Transactions: Nearly 39% of customer transactions now occur via digital channels.
Management Statements:
George Jacob Muthoot, Chairman: Emphasizes the growth in consolidated loan AUM and profit, highlighting strong performance in gold loan, microfinance, housing finance, and insurance broking businesses.
George Alexander Muthoot, Managing Director: Stresses the strong growth in gold loan assets, strategic focus on disbursements, operational efficiency, and margins.
also recent dikkat to IFL on gold loan by RBI is good opportunity for Muthoot finance as well as manappuram . both this events could become strong tailwinds in growth and valuation
Muthoot Finance has been up 50% since then while gold bees is up roughly 35% . pvt bank etf is more and less same. Gold is expected to rise another 15% over next 12-18 month and that should help Muthoot finance may reach its valuation of 5x book value at which traded in last gold up cycle
Just went through a bit on the RBI draft, there is nothing that may affect Muthoot, a cos like Muthoot will be able to maintain easily..also guideline is industry specific, overeaction by mkt…
After today’s correction , Current PB ration = Muthoot PB ratio on 5 yrs basis and also expecting , 30% AUM growth next yr…we need to understand Unsecured lending is still in bad shape, it will take 2-3 qtrs more , for things to stabilize…+ Gold is almost ATH , given global uncertainty and will continue to be
