New Delhi, May 16 -- Muthoot Finance Ltd's shares have declined about 8% since its March quarter (Q4FY25) results were declared on Wednesday. Interestingly, it is difficult to find a fault in the results, making the sharp reaction from the Street inexplicable. Perhaps, there could be some temptation for profit booking as the stock has doubled over the past two years.

But before analysing the possible reasons for the stock price correction, let's take a look at key Q4 numbers. Standalone net interest income (NII) increased 36% year-on-year and 7% QoQ to Rs.2,904 crore. The NII growth came through as assets under management (AUM) increased 43% year-on-year and 11% QoQ to Rs.1.09 trillion.

Profit after tax increased 43% year-on-year and 11...