Brokerage firm Motilal Oswal said that gold loan penetration levels remain low and the addressable market is very large so niche expertise and single product focus will be growth enablers for Muthoot Finance. (Photo: PTI)
Muthoot Finance shares jumped as much as 8 per cent in the morning trade on Wednesday after Motilal Oswal initiated coverage with ‘buy’ rating with a target price of Rs 234 per share.
At 10.28 am, Muthoot Finance’s shares were trading 6.70 per cent up at Rs 174.40 on BSE. On NSE, the scrip was trading 6.26 per cent up at Rs 174.05.
Brokerage firm Motilal Oswal said that gold loan penetration levels remain low and the addressable market is very large so niche expertise and single product focus will be growth enablers for Muthoot Finance.
It further added that current valuations of 6.9x FY17 P/E and 1x FY17 BV are attractive.
With Reuters inputs
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