Muthoot Finance share slips over 4% after board defers stock split plan

Muthoot Finance share fell in early trade today after the NBFC deferred a proposal for stock split considering the current economic situation caused by the corornavirus pandemic. Muthoot Finance stock price slipped 4.48% to Rs 1148.95 against previous close of Rs 1,202 on BSE.

Muthoot Finance share opened with a loss of 3.89%  at Rs 1,156 today. The stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

It has gained 96.18% in one year and gained 55% since the beginning of this year.

Market cap of the firm fell to Rs 47,575 crore.

"The board discussed in depth the pros and cons of the stock split proposal. Though, the share price movement over the last few months and financial indicators were found to be ideal for a stock split proposal at the current scenario, the board unanimously decided to defer the proposal to sub-divide the equity shares to the company to a future date," the company said in a filing.

Future update on this matter will be intimated in due course, Muthoot Finance said.

The gold financing firm on July 3 informed about its proposal for a stock split.

In Q4 of last fiscal, the firm reported a standalone net profit of Rs 815 crore against Rs 512 crore in Q4FY19.

Standalone loan assets stood at Rs 41,611 crore in Q4 against Rs 34,246 crore as on March 31, 2019, Y-o-Y growth of 22%. The firm reported a 51 per cent year-on-year increase in its consolidated net profit at Rs 3, 169 crore for the financial year ended March 31, 2020 (FY20).

The company had posted consolidated net profit of Rs 2,103 crore in the financial year 2018-19 (FY19). Standalone net profit of the company stood at Rs 3,018 crore registering an increase of 53% for FY20 as against Rs 1,972 crore in the previous year.

Stocks in news: HDFC Bank, Canara Bank, Muthoot Finance, Vodafone Idea, YES Bank