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Muthoot Finance Q4 Review: Draft Norms Affecting LTV Remains A Key Concern, Says IDBI Capital, Maintains Hold

IDBI Capital revises estimates downwards led by lower AUM growth and maintain the ‘Hold’ rating with a new target price.

<div class="paragraphs"><p>Muthoot's net interest margins declined to 11.3% vs 11.6% led by increase in cost of funds during Q4 FY25. (Photographer: Vijay Sartape/NDTV Profit)</p></div>
Muthoot's net interest margins declined to 11.3% vs 11.6% led by increase in cost of funds during Q4 FY25. (Photographer: Vijay Sartape/NDTV Profit)
Muthoot Finance's gold AUM growth remain strong backed by high gold prices and moderating competitive intensity. Growth guidance has been maintained at 15%, though the brokerage expects the new draft norms to significantly influence loan-to-value, and this impact will remain a hangover.
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