India, Aug. 3 -- India's gold loans industry is currently facing one of its most competitive eras ever. This is because banks, NBFCs, and new-generation lenders offer low interest rates and flexible loan products to customers amid the recently announced regulations that have made the sector become more organized. In light of such developments, Muthoot Finance has opted for a strategy that prioritizes growth over generating maximum revenues from lending.

With a market cap of Rs 1.16 lakh crore, the shares of Muthoot Finance Ltd. are trading at Rs 2,890 and are trading at a PE of 10 compared to their industry's PE of 21. The shares have given a return of more than 80% in the last 5 years.

Financial performance This strategy has been adopt...