Muthoot Finance stocks surged more than 3 per cent in the intraday trade as the gold loan mortgage company is expected to post better-than-expected results on Wednesday.
Muthoot Finance stocks rose to Rs. 1,276 apiece, an increase of 3.04 per cent (Rs. 37.70 per share) from the previous close of Rs. 1,238.30.
It is currently trading at Rs. 1,270.75 (or 2.62 per cent)
With individuals and small businesses facing liquidity challenges due to Covid-induced business losses and salary cuts, gold loan companies (GLCs) have witnessed a quantum jump in demand for loans over the last few months.
“The stock has bottomed out near 1,080 after a decent correction and has indicated a positive bias. The RSI is also indicating a trend reversal from the oversold zone to signal a buy. We suggest to buy and accumulate the stock for an upside target of Rs 1,400, keeping the stop loss of Rs 1,080,” Prabhudas Lilladher said.
Muthoot Finance will post its first quarter results today. Its Q4 net profit was up 52 per cent at Rs 835.8 crore.