Muthoot Finance shares hit fresh record high; analysts see scope for further gains

Shares of Muthoot Finance Ltd surged 4.42 per cent on Monday to scale an all-time high of Rs 3,060.80. The stock eventually settled 3.99 per cent higher at Rs 3,048.15, extending its strong year-to-date (YTD) rally of 37.58 per cent.

The counter witnessed robust activity on BSE, with around 18,000 shares changing hands -- higher than the two-week average volume of 14,000 shares. The day's turnover stood at Rs 5.38 crore, giving the non-banking financial company (NBFC) a market capitalisation (m-cap) of Rs 1,22,373.61 crore.

A few market experts believe the stock could continue its upward trajectory in the near term. An analyst has identified the Rs 3,040–3,000 zone as a buying range.

Vatsal Bhuva, Technical Analyst at LKP Securities, said, "The stock is in a strong uptrend, marked by higher lows and consistent breakouts. Today, it broke above a key resistance at Rs 3,000. A hidden RSI bullish divergence further signals continuation of this positive momentum. Traders can consider buying in the Rs 3,040–3,000 range with a stop-loss at Rs 2,920. The upside target is Rs 3,200, offering a favorable risk-reward for short-term traders and momentum investors."

Echoing similar optimism, Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted, "Muthoot Finance is in a strong uptrend, touching lifetime highs. Any dip towards Rs 2,750–2,700 should act as a support zone. Based on historical trends, the stock has the potential to touch Rs 3,200 in the near term."

The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 70.30. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-earnings (P/E) ratio of 19.08 against a price-to-book (P/B) value of 4.58. Earnings per share (EPS) stood at 153.65 with a return on equity (RoE) of 24.02. According to Trendlyne data, Muthoot Finance has a one-year beta of 0.7, indicating low volatility.

As of June 2025, promoters held a 73.35 per cent stake in the NBFC.