Muthoot Finance Share Price at All-Time Highs; Bullish Target at Rs 2,450
Muthoot Finance touched all-time high in today's session and the stock closed 3.33% higher on first trading session for year 2025. The stock has given 14 percent returns over the last one month and technical charts suggest bullish breakout on this counter. Muthoot Finance, one of India’s leading gold loan companies, has demonstrated resilience in navigating market dynamics. With its stock recently touching a 52-week high of Rs 2,220.25, the company boasts an impressive market cap of Rs 88.61K crore. As investors eye this gold-backed financier, the stock offers intriguing insights into its valuation, technical trends, and competitive position in the Indian financial services sector.
Stock Details
Muthoot Finance's stock performance reflects steady investor interest, driven by robust fundamentals and market confidence. Below are key details:
| Stock Metric | Value |
|---|---|
| Open | Rs 2,131.00 |
| High | Rs 2,220.25 |
| Low | Rs 2,131.00 |
| Market Cap | Rs 88.61K Cr |
| P/E Ratio | 18.94 |
| Dividend Yield | 1.09% |
| 52-Week High | Rs 2,220.25 |
| 52-Week Low | Rs 1,261.90 |
Recent Analyst Recommendations
ICICI Direct: Maintains a Buy recommendation with a target price of Rs 2,450, citing strong loan growth and asset quality improvement.
HDFC Securities: Highlights the stock’s potential to touch Rs 2,500, supported by increased demand for gold-backed loans amid inflationary pressures.
Motilal Oswal: Reiterates a neutral stance, with a target price of Rs 2,200, based on limited upside from current levels.
Technical Analysis
Candlestick Pattern Analysis
Recent candlestick patterns on the daily chart indicate a bullish engulfing pattern, signaling potential upside momentum. However, the stock’s proximity to its 52-week high suggests that some consolidation may occur.
Fibonacci Levels
Fibonacci retracement levels based on the 52-week high and low are as follows:
| Fibonacci Level | Price (Rs) |
|---|---|
| 23.6% | Rs 1,607.93 |
| 38.2% | Rs 1,762.84 |
| 50% | Rs 1,941.08 |
| 61.8% | Rs 2,119.32 |
| 78.6% | Rs 2,326.48 |
Support and Resistance Levels
| Level Type | Price (Rs) |
|---|---|
| Immediate Support | Rs 2,100 |
| Major Support | Rs 1,941 |
| Immediate Resistance | Rs 2,250 |
| Major Resistance | Rs 2,326 |
Competitive Landscape
Muthoot Finance operates in a competitive sector, with Manappuram Finance and Shriram Finance as its primary competitors.
Manappuram Finance: Known for a diversified portfolio, its market cap stands at Rs 24,000 crore, offering a higher dividend yield of 2.5%.
Shriram Finance: Focused on vehicle loans and small business financing, it poses indirect competition in the broader financial services market.
Outlook and Investment Strategy
Muthoot Finance is well-positioned to capitalize on growing demand for gold-backed loans in India. Technical indicators suggest that the stock is approaching overbought levels but retains potential for upside if it breaks key resistance at Rs 2,250. Long-term investors may consider accumulation during dips, targeting Rs 2,450-2,500.
