Muthoot Finance shares slip from record high; should investors book profits now?

Shares of Muthoot Finance Ltd climbed 0.42 per cent on Wednesday to hit an all-time high of Rs 2,954.25. The stock eventually settled 1.43 per cent lower at Rs 2,899.85. Despite this drop, it still remains up 30.89 per cent year-to-date (YTD).

Analysts hold mixed views on Muthoot Finance for the near term. While one sees upside potential towards Rs 3,200, another expects the stock to trade in the Rs 2,750–3,050 range. A third, however, warns that a break below Rs 2,839 could drag it down to Rs 2,604, advising investors to book profits at current levels.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "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."

Sebi-registered analyst AR Ramachandran commented, "The stock looks bearish but is overbought on daily charts, with strong resistance at Rs 2,955. Investors should consider profit booking, as a daily close below Rs 2,839 could drag the stock down to Rs 2,604 in the near term."
 
Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, noted, "Support is placed at Rs 2,800 and resistance at Rs 2,950. A clear move above Rs 2,950 may lead to further upside towards Rs 3,050. In the short term, the stock is likely to trade between Rs 2,750 and Rs 3,050."

Technically, 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 67.29. 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 24.87 against a price-to-book (P/B) value of 4.60. Earnings per share (EPS) stood at 118.30 with a return on equity (RoE) of 18.49. 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 non-banking financial company (NBFC).