While gold has traditionally been a dormant store of value for Indian households, the current price upcycle is increasingly turning the asset into a source of liquidity through gold-backed loans.
Gold-financers Muthoot Finance and Manappuram Finance saw a divergence in stock performance primarily due to stock re-rating, says Sunny Agrawal, Head of Fundamental Research at SBI Securities.
Gold loans stood at around ₹18.6 trillion, or nearly 11 per cent of retail credit, after growing at a 34 per cent CAGR between FY21 and FY26.
Muthoot Finance was up 4.7 per cent intraday to ₹2,997.80, while Manappuram Finance rose 3.2 per cent to ₹351. IIFL Finance rose 3 per cent to ₹649 apiece, CSB Bank moved the most, gaining 5 per cent.
Manappuram Finance is moving from promoter-led management to a professional leadership model as Bain Capital deepens its stake in the gold loan-focused NBFC
Manappuram Finance reported consolidated profit of Rs 585 crore for the first quarter ended June 30, 2026, compared to a profit of Rs 132 crore in the corresponding quarter of the previous year.
Hitesh Rathi, Technical Analyst (Equity & Derivatives) at Angel One believes that the technical set-up of Titan, Kalyan Jewellers and Hindustan Zinc suggests further upside for these stocks.
Investec noted that gold NBFCs are dependent on the gold price, with negligible volume growth. It expects a 12 per cent gold price appreciation in line with long-term history.
Axis Securities in its weekly technical outlook and stock picks forecasts up to 17% upside in Varun Beverages, Manappuram Finance and Endurance Technologies.
Ruchit Jain on Motilal Oswal recommends buying the shares of Manappuram Finance, Angle One, and Siemens Energy today
Ajit Mishra of Religare Broking has recommended buying the shares of Apollo Hospitals, Manappuram Finance, and Varun Beverages today
In the past one month, Manappuram Finance has outperformed the market by soaring 20 per cent, as compared to a 4.4 per cent decline in the BSE Sensex.
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In the near-term, the non-gold portfolio will continue to consolidate before resuming growth momentum in a calibrated manner from FY27 onwards, analysts at Axis Securities said in the Q3 result update
The buying on the counter came after Bain Capital launched an open offer to buy up to 26 per cent stake in Manappuram Finance from public shareholders at ₹236 per share
The fall in gold prices, according to analysts, may actually support jewellery demand in the medium-term, even though it may create short-term pressure for some players