What's stopping muthoot from going up higher than their sector PE?

u/Desperate-League-526 · Reddit — r/IndianStockMarket · January 10, 2026 at 19:15 · ⬆ 3 pts · 💬 4 comments  | View on Reddit ↗
AI Summary

Original Reddit post

Author sees Muthoot Finance as undervalued relative to sector PE because gold-backed collateral improves with rising gold prices, but asks what risk the market is pricing in.

MUTHOOTFIN.NS — WATCH The author argues Muthoot Finance should not be valued like a microfinance lender because its loans are backed by gold collateral before disbursement. Rising gold prices increase collateral value relative to loaned amounts, supporting potential upside. The stock price does not yet reflect this, suggesting a re-rating toward or above sector PE may be possible.

Gold value is raising and potentially more upside, which means their collaterals will be higher than loaned amounts. Everything seems great but stock price doesn't reflect that.

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u/Desperate-League-526 Reddit r/IndianStockMarket
Gold-backed collateral merits higher PE re-rating
The author argues Muthoot Finance should not be valued like a microfinance lender because its loans are backed by gold collateral before disbursement. Rising gold prices increase collateral value relative to loaned amounts, supporting potential upside. The stock price does not yet reflect this, suggesting a re-rating toward or above sector PE may be possible.
MUTHOOTFIN.NS MED
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This Reddit post, published January 10, 2026, features u/Desperate-League-526 discussing MUTHOOTFIN.NS. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/Desperate-League-526  · Tickers: MUTHOOTFIN.NS