Muthoot Targets Robust Growth

Aaj Ka Bazaar

As the trading week kicks off on Monday, investor sentiment is quite positive. This follows last week’s resurgence in risk appetite, driven by renewed hopes of a U.S. ‘soft landing.’ The US frontline indices had reported it as one of the best week as the market started to rebound as key economic data started to show signs of stabilization, bolstering investor's confidence of rate cut. The Asian markets are displaying a mixed performance as Nikkei dipped after its previous week rally and Hang Seng stayed in the positive territory. The oil prices eased in the early Asian trading, as fear of weaker demand from China weighed on the market sentiments, in addition to the progress in ceasefire talks in the Middle East, which could lower the supply side risk. The Indian indices are expected to start the day positively, taking cues from GIFT Nifty.

Markets Around Us?

BSE Sensex - 80,541.72 (0.13%)

Nifty 50 - 24,593.55 (0.21%)

Bank Nifty - 50,496.95?(-0.04%)

Dow Jones - 40,640.69 (-0.06%)

Nasdaq - 17,631.72 (0.21%)

FTSE - 8,311.41 (-0.43%)

Nikkei 225 - 37,588.32 (-1.25%)

Hang Seng - 17,614.62 (1.05%)

Sector: NBFC

Muthoot Finance to add 400 branches this fiscal

Muthoot Finance plans to add around 300 to 400 branches in the current fiscal year, having already added 218 branches in Q1 FY25. The company reported a record quarterly profit of Rs 1,196 crore, a 14% growth, and achieved the highest ever gold loan disbursements of Rs 73,648 crore. Despite the strong performance, Muthoot faced some pressure on asset quality, mainly due to higher loan growth and regulatory requirements for provisioning non-performing assets (NPAs). However, the company is confident that these provisions won't lead to actual losses, given their low loan-to-value (LTV) ratio. Muthoot is also focused on maintaining high compliance and governance standards to avoid issues faced by other NBFCs. For FY25, Muthoot Finance is targeting an overall growth of 15% in assets under management (AUM).

Why it Matters:

Investors might view the 15% growth target in assets under management (AUM) as a conservative yet achievable goal, reflecting steady and sustainable growth. Overall, Muthoot Finance's performance and strategic expansion could make it an attractive option for investors seeking stability and growth in the financial sector.

NIFTY 50 GAINERS

BPCL - 342.60?(3.04%)

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NIFTY 50 LOSERS

APOLLOHOSP?- 6,584.20 (-1.54%)

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Sector: 2_Wheeler

TVS Motors to expand electric 2W sales

TVS Motor Company is planning to expand the sales of its electric vehicles (EVs) to both developing and developed markets, with a focus on making India a key export hub for electric two-wheelers. The company has already begun selling its electric scooter, the TVS iQube, in the ASEAN region and plans to leverage its plant in Indonesia to further tap into these markets. In Q1 FY25, TVS sold 52,000 electric two-wheelers, up from 39,000 units in the same period last year. The management emphasized the company's commitment to expanding its EV lineup and increasing its presence in both domestic and international markets, with a strong network of dealers in India and plans to grow further.

Why it Matters:

This strategic move could position TVS as a key player in the global EV market, enhancing its revenue streams from international sales. Investors may view this expansion as a positive step towards capturing a larger market share in the rapidly growing EV segment, potentially leading to an increase in the company's valuation.

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Around the World

Asian stocks took a pause on Monday after global markets had their best week in nine months, driven by hopes that the U.S. economy will avoid a recession and that cooling inflation could lead to interest rate cuts. These expectations boosted gold to over $2,500 an ounce for the first time and weakened the dollar against the euro. Federal Reserve officials hinted at possible easing in September, and upcoming minutes from the last policy meeting are expected to support this view. Investors are also eyeing Fed Chair Jerome Powell's speech this week for further clues on rate cuts. U.S. stock futures and European futures showed modest gains, while Asian markets saw mixed performance. The euro remained steady, and gold prices held near record highs, while oil prices dipped slightly due to concerns about Chinese demand.

Option Traders Corner

Max Pain

Nifty 50 - 24,500

Bank Nifty - 50,700

Nifty 50 - 24,436 (Pivot)

Support - 24,309, 24,077, 23,949

Resistance - 24,668, 24,795, 25,027

Bank Nifty - 50,308 (Pivot)

Support - 50,014, 49,511, 49,216

Resistance - 50,811, 51,106, 51,608

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