Muthoot Finance share price closed higher today after the gold financing firm said its board of directors would meet on July 18 to consider the proposal for stock split. Share price of Muthoot Finance gained 3.8% intraday to Rs 1150.8 compared to the previous close of Rs 1,108 on BSE.
Muthoot Finance stock has gained 5.5% in last four days. Muthoot Finance stock stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Total 0.94 lakh shares changed hands amounting to turnover of Rs 10.71 crore.
In one year, the large cap stock has gained 79.87% and risen 50.46% since the beginning of this year. Market cap of the firm rose to Rs 45,970 crore.
The stock hit all-time high of Rs 1,283.95 on June 19, 2020 after Muthoot Finance reported a 59% growth in Q4 profit. For quarter ended March, the firm reported standalone net profit of Rs 815 crore against Rs 512 crore in Q4FY19. Standalone loan assets stood at Rs 41,611 crore in Q4 against Rs 34,246 crore as on March 31, 2019, Y-o-Y growth of 22%.
During the quarter, gold loan assets increased by Rs 3,113 crore. The firm reported 51 per cent year-on-year increase in its consolidated net profit at Rs 3, 169 crore for the financial year ended March 31, 2020 (FY20).
The company had posted consolidated net profit of Rs 2,103 crore in the financial year 2018-19 (FY19). Stock split is a process, in which the company divides its existing shares into multiple shares to boost the liquidity of the shares.
Although the number of shares outstanding increases, the total value of the shares remains the same compared to pre-split amounts. It lowers the trading price of the stock so that more investors can buy the shares.
The board will also seek approval of shareholders for increase the borrowing powers of the company from existing Rs 50,000 crore to Rs 75,000 crore, Muthoot Finance said.