Muthoot Finance after a stellar rally of 70% this year has made the gold financing company big enough to now be included in the MSCI India Index as per analyst.
In fact for this year, the gains made by the company are the third-highest among the country's 200 top firms. And with a valuation of $7 billion, MSCI Inc. may consider the stock for inclusion in its index in its quarterly review due in August as per Edelweiss Financial Services Ltd. and Target Investing.
While other lenders are facing a crisis of piling bad loans, cash for gold company has disbursed loans backed by gold. "Business is good as gold loans are picking up pace very quickly," said Sameer Kalra, an investment strategist at Target in Mumbai.
If added, Muthoot will provide investors who track MSCI India Index another addition to gold prices after the jewellery maker Titan Co.