Buy Muthoot Finance, target price Rs 1290: Kotak Securities

Kotak Securities has buy call on Muthoot Finance with a target price of Rs 1290. The current market price of Muthoot Finance Ltd. is Rs 1231.65.

Muthoot Finance Ltd., incorporated in the year 1997, is a Large Cap company (having a market cap of Rs 50186.64 Crore) operating in NBFC sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 2821.03 Crore, up 8.31 % from last quarter Sales of Rs 2604.48 Crore and up 17.67 % from last year same quarter Sales of Rs 2397.38 Crore Company reported net profit after tax of Rs 930.80 Crore in latest quarter.

Investment Rationale
The stock is trading above short-term averages with strong higher bottom formation on the daily charts.

Promoter/FII Holdings
Promoters held 73.4 per cent stake in the company as of Sept 30, 2020, while FIIs held 13.9 per cent, DIIs 7.7 per cent and public and others 5 per cent.