Market Brief: Muthoot Finance **Muthoot Finance** shares experienced a sharp sell-off on **February 13, 2026**, despite delivering record-breaking growth in its third-quarter earnings. The stock plummeted as much as **14%** during intraday trading, touching a low of **Rs 3,577** on the BSE. This correction ended a five-day winning streak and saw the company underperform the broader **Sensex**, which fell by approximately **0.82%** on the same day. The market reaction stands in stark contrast to the company's fundamental performance. For the quarter ending December 2025, standalone net profit nearly doubled, surging **94.9%** to **Rs 2,656 crore** compared to **Rs 1,363 crore** in the previous year. This growth was fueled by a massive **64%** rise in total income, which reached **Rs 7,263 crore**. Assets Under Management (AUM) reached a milestone of **Rs 1.48 lakh crore**, reflecting a year-on-year expansion of **51%**. The core gold loan portfolio remains the primary driver, accounting for **Rs 1.40 lakh crore** of the total assets. Management has responded to this momentum by raising its annual growth guidance for **FY26** to **44–45%**, up from the previous estimate of **30–35%**. Analysts suggest the stock's decline may be attributed to profit booking and technical factors. While the stock fell below its **20-day** and **50-day** moving averages, it remains above its **200-day** moving average of **Rs 3,045**, indicating the long-term bullish trend is still intact. Concerns over a **2%** sequential dip in gold tonnage and a slight moderation in core net interest margins likely contributed to the immediate price pressure. Brokerages remain overwhelmingly positive. **Jefferies** maintained a Buy rating with a target of **Rs 4,750**, citing healthy loan-to-value buffers and easing regulatory norms for branch expansion. **CLSA** retained its Outperform rating with a target of **Rs 4,600**, noting that earnings exceeded projections by nearly **8%**. **Nuvama** raised its target price to **Rs 4,700**, highlighting the company’s ability to defend yields despite rising competition. Operational highlights include the planned opening of **150-200** new branches in the coming year. The company is benefiting from the **Reserve Bank of India's** decision to remove the requirement for prior approval for branch expansion for large lenders. This regulatory shift is expected to further accelerate the company's physical footprint and customer acquisition.