New Delhi, Aug. 14 -- Muthoot Finance Ltd shares surged about 10% on Thursday, also hitting a new 52-week high of Rs.2,800, following stellar June quarter (Q1FY26) results, in which gold loan assets under management (AUM) rose 40% year-on-year and 10% quarter-on-quarter. The management expects traction to sustain in FY26.

This shouldn't be surprising given the steep rise in gold price (now around Rs.1 lakh/10 grammes), which means a higher value of collateral for gold loan financiers and a boost to their AUMs.

"While gold prices could stay range-bound, Muthoot has headroom to lift loan-to-value (LTV), which now is at 62% versus a five-year average of 65%," said a Jefferies India report. LTV ratio helps to gauge how much loan one can rec...