Muthoot Finance Falls 6% Despite Record AUM, Strong Q4; SEBI RAs See Support Near ₹2,000

India’s largest gold loan provider, Muthoot Finance, reported robust March quarter results, posting its highest-ever Asset Under Management (AUM) and a 22% year-on-year jump in net profit.

However, the stock fell 6% on Thursday. 

SEBI-registered advisor Finversify attributed the stock's weakness to investor concerns surrounding the Reserve Bank of India's draft guidelines on loan-to-value (LTV) norms, which overshadowed the company's robust financial performance and record dividend declaration of ₹26 per share. 

From a technical standpoint, they observed short-term weakness in the stock, pointing to potential downside toward the 200-day Exponential Moving Average (EDMA) near ₹2,050. 

A sustained upside move, they said, would require a close above ₹2,350.

Analyst Sameer Pande echoed this cautious view, suggesting the stock was in a sideways-to-negative trajectory. 

He pegged key support at ₹2,000 and resistance in the ₹2,330–₹2,400 range.

Data on Stocktwits shows retail sentiment is ‘bearish’ on the counter. 

Muthoot Finance shares have remained largely flat on a year-to-date basis, underperforming broader indices (YTD)

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