Higher funding costs, rising competition may weigh on Muthoot Finance
· economictimes.indiatimes.com
Muthoot Finance shares dropped nearly eight percent after reporting lower net interest margins. Loan yields are expected to remain under pressure this year due to rising costs. Earnings growth in FY27 will depend on loan book expansion, not margin improvement. The company's stock has seen a nineteen percent decline since mid-May. Analysts anticipate moderated earnings growth for Muthoot Finance over coming years.
In the current fiscal year, falling loan yields may not find any support from funding costs either, as borrowing costs are unlikely to soften and may even rise ...