Muthoot Finance was up 1.8% to Rs 456.30 at 11:47 IST on BSE on reports a domestic brokerage has recommended buy on the stock for 2-3 quarters for a target of Rs 506-546.
Meanwhile, the S&P BSE Sensex was up 82.88 points or 0.27% at 31,178.58.
On the BSE, 2.17 lakh shares were traded on the counter so far as against the average daily volumes of 82,000 shares in the past two weeks. The stock had hit a high of Rs 459.30 so far during the day, which is a record high. The stock hit a low of Rs 449.40 so far during the day. The stock had hit a 52-week low of Rs 250 on 24 June 2016.
The stock had outperformed the market over the past one month till 12 June 2017, advancing 14.98% compared with the Sensex's 3.01% rise. The stock had also outperformed the market over the past one quarter, gaining 32.64% as against the Sensex's 7.43% rise. The scrip had also outperformed the market over the past one year, surging 75.44% as against the Sensex's 16.74% rise.
The large-cap company has equity capital of Rs 399.54 crore. Face value per share is Rs 10.
The domestic brokerage reportedly said that gold loan companies even after the recent run up quote at a discount in terms of price to average book value compared to other categories of non-banking finance companies (NBFCs) like housing finance, personal/durable finance, micro finance.
Expectation of good monsoon this year could trigger larger demand for gold loans across the country especially in the south, the brokerage said.
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Muthoot Finance's net profit rose 21.3% to Rs 321.78 crore on 18% growth in total income to Rs 1713.22 crore in Q4 March 2017 over Q4 March 2016.
Muthoot Finance is the largest gold financing company in India in terms of loan portfolio.
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