Gold prices have surged to all‑time highs, and the jump is lifting the shares of India’s biggest gold‑loan lenders.
Gold hits record levels worldwide
Spot gold rose to a record $4,439 per ounce, while Indian gold futures on the MCX crossed Rs 1.38 lakhs per 10 grams for February contracts and kept climbing for April and June deliveries.
Why gold‑loan stocks are rising
Higher gold prices mean borrowers can get larger loans against their jewelry, boosting demand for gold‑backed loans. This improves earnings for lenders that specialize in such loans.
Manappuram Finance’s surge
- Share price jumped up to 6.8%, reaching a 52‑week high of Rs 314.70.
- The company aims to grow its gold‑loan book with bigger ticket sizes and more customers.
- Non‑gold assets are expected to stabilize before growing again.
Muthoot Finance’s gains
- Shares rose about 2.1% to a peak of Rs 3,889.
- Strong loan growth, better asset quality and wider profit margins helped the stock beat earnings expectations.
- Analysts see continued demand for gold loans as unsecured credit tightens.
Overall market context
Since the start of 2025, Muthoot Finance is up around 82% and Manappuram Finance about 65%, far outpacing the BSE Sensex’s 9% rise.
Remember, this is just an overview, not a recommendation. Do your own research before making any investment decisions.