Latest news with #ManappuramFinance
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Business Standard
2 days ago
- Business
- Business Standard
Muthoot Finance at new high; charts foresee 32% upside for gold loan shares
Muthoot Finance and Manappuram Finance have gained up to 19% thus far in June after RBI eased norms on small-ticket gold loans. Technical charts hint that these stocks can potentially rally 32% more. Rex Cano Mumbai Listen to This Article Shares of gold loan provider - Muthoot Finance were seen trading at new life-time highs in trades on Thursday, June 19. The stock hit a new all-time high at ₹2,670. In comparison, its competitor - Manappuram Finance stock was seen trading with a marginal loss at ₹264. Manappuram registered its summit at ₹284.90 on the NSE on June 16. Both stocks - Muthoot Finance and Manappuram Finance have witnessed a sharp rally in the month of June so far, after the Reserve Bank of India (RBI) on June 6 eased norms for small-ticket gold loans.
Reuters
2 days ago
- Business
- Reuters
India's new gold loan rules to reshape lenders' business models, says S&P
June 19 (Reuters) - New rules from India's central bank will make lenders in the booming gold loan market overhaul their underwriting practices and brace for higher near-term costs, S&P Global Ratings said in a note on Wednesday. The Reserve Bank of India's final guidelines on gold-backed lending, issued earlier this month, mandate a shift to cash flow-based credit assessments and tighter monitoring of loan-to-value (LTV) ratios. S&P said these changes will have the greatest impact on non-bank lenders heavily reliant on gold loan portfolios. 'The first is that finance companies face upfront costs as they transition to a cash flow-based assessment of the borrower's creditworthiness," said Shinoy Varghese, credit analyst at S&P Global Ratings. Lenders have until April 1, 2026, to comply with the new norms. While the rules allow greater flexibility in offering short-tenor loans for consumption borrowing, the inclusion of interest rates in LTV calculations may shrink actual disbursals to borrowers, the ratings agency said. S&P said that gold-loan specialists like Muthoot Finance ( opens new tab and Manappuram Finance ( opens new tab will likely face the steepest adjustments. It also warned that as lenders broaden their risk appetite and explore new loan structures, the sector may become more vulnerable to sharp corrections in gold prices.
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Business Standard
12-06-2025
- Business
- Business Standard
Muthoot, Manappuram hit new highs in weak market; rally upto 17% in 1 week
Shares of gold finance companies Muthoot Finance (₹2,598.80) and Manappuram Finance (₹275) hit their respective new highs, gaining 2 per cent on the BSE in Thursday's intra-day trade in an otherwise weak market. In comparison, the BSE Sensex was down 0.43 per cent at 82,158 at 11:40 AM. In past one week, the stock price of Manappuram Finance (up 17 per cent) and Muthoot Finance (13 per cent) have outperformed the market after the Reserve Bank of India (RBI) on Friday, June 6, 2025 issued its final rules on loans against gold collateral, detailing easier norms for small ticket loans. The BSE Sensex was up 1 per cent during the same period. In financial year 2024-25 (FY25), Muthoot Finance, India's largest gold loan Non-Banking Financial Company (NBFC), reported a consolidated loan asset under management (AUM) of ₹1.22 trillion, having crossed ₹1 trillion in gold loan AUM. Track LIVE Stock Market Updates RBI revised guidelines for gold, silver-backed loans The RBI announced the final gold lending guidelines to harmonise gold lending, including credit assessment for non-consumption loans, loan-to-value (LTV) thresholds based on ticket sizes, loan tenors, renewal/top-ups, internal audits, gold auctions, and other operational processes. The RBI's revised guidelines for gold and silver-backed loans, effective April 1, 2026, are aimed at improving credit access for small borrowers and harmonising regulations across banks and NBFCs. The LTV ratio for loans up to ₹2.5 lakh has been raised to 85 per cent (from 75 per cent), while loans between ₹2.5–5 lakh are capped at 80 per cent. Bullet loans must calculate LTV on the total maturity payout. Lending against bullion, exchange-traded funds (ETFs), or re-pledging is barred. These guidelines will apply uniformly to all the regulated entities doing gold lending, including banks, small finance banks (SFBs), and NBFCs. Brokerage, Management views on Muthoot, Manappuram Finance Structurally positive for small-ticket credit lenders; the higher LTV limits and relaxed norms are expected to drive growth in gold loan demand, benefiting players like Muthoot Finance and Manappuram Finance, according to ICICI Securities. Now that the RBI has released the final guidelines on gold loans, the overhang on the gold loan NBFCs will now go away. This is positive for gold loan NBFCs, particularly Muthoot, which had borne the maximum brunt of the draft gold lending guidelines. Meanwhile, looking ahead to FY'26, the management of Manappuram Finance remains optimistic. They expect the company's gold AUM to grow strongly, supporting digital onboarding and rural demand. The gold loan portfolio remains the company's core strength, accounting for 59.5 per cent of consolidated AUM compared to 55.4 per cent in Q3FY25. As of March 31, 2025, the company's consolidated gold loan AUM stood at ₹ 25,586 crore, up by 4.4 per cent quarter-on-quarter (Q-o-Q) and 18.7 per cent year-on-year (Y-o-Y) in spite of heightened competition, the management said. Meanwhile, across the six rate cut cycles since calendar year 2002, NBFC had consistently outperformed during and/or after easing phases, delivering 79 per cent average 12-month market capitalisation gains, 24 per cent profit after tax growth, and 15 per cent book value (BV) expansion. Even during the cut phase, they had returned to 37 per cent on average, outpacing banks. Their outperformance stemmed from high sensitivity to liquidity and funding cost, according to analysts at Elara Capital. The brokerage firm in the strategy report said its preferred picks post rate cuts are HDFC Bank, Axis Bank, State Bank of India, Bank of Baroda, Bajaj Finance, Muthoot Finance, Mahindra & Mahindra, TVS Motors, Godrej Properties, Sobha, and Oberoi Realty.
Mint
10-06-2025
- Business
- Mint
Breakout stocks to buy or sell: Sumeet Bagadia recommends five shares to buy today — 10 June 2025
Breakout stocks buy or sell: Indian stock markets extended their winning streak for the fourth consecutive session on Monday, buoyed by the Reserve Bank of India's recent 50 basis point repo rate cut. The Sensex ended the day at 82,445.21, gaining 256.22 points or 0.31%, while the Nifty rose by 100.15 points or 0.40% to close at 25,103.20. All Nifty sectoral indices closed in positive territory except for Nifty Realty. Among the sectors, Nifty Financial Services Ex-Bank led the gains, with Nifty PSU Bank and Nifty Oil & Gas following closely behind. Sumeet Bagadia, Executive Director at Choice Broking, believes that Indian stock market sentiment is positive as the Nifty 50 index is sustaining above 25,000. Speaking on the outlook of Indian stock market, Bagadia said, ' Once the Nifty 50 index breaks above 25,150 decisively, we can soon expect the benchmark index to touch 25,600 and 26,000 decisively. So, one should maintain stock-specific approach and look at those stocks that are looking strong on the technical chart. Looking at breakout stocks can be a good option." Sumeet Bagadia recommends five shares to buy today — Whirlpool Of India, Vishal Mega Mart, Manappuram Finance, L&T Finance, and Hindware Home Innovation. 1] Whirlpool Of India: Buy at ₹ 1354.70, target ₹ 1410, stop loss ₹ 1300; 2] Vishal Mega Mart: Buy at ₹ 131.01, target ₹ 141, stop loss ₹ 126; 3] Manappuram Finance: Buy at ₹ 264.80, target ₹ 283, stop loss ₹ 255; 4] L&T Finance: Buy at ₹ 193, target ₹ 207, stop loss ₹ 186; 5] Hindware Home Innovation: Buy at ₹ 284.30, target ₹ 305, stop loss ₹ 271. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
News18
09-06-2025
- Business
- News18
Muthoot, Manappuram Finance Shares Surge After RBI's Final Gold Loan Regulations
Last Updated: Gold financing firms extended their gains on Monday, June 9, after the Reserve Bank of India (RBI) issued its final guidelines on gold loans Gold financing firms extended their gains on Monday, June 9, after the Reserve Bank of India (RBI) issued its final guidelines on gold loans, which include an increased loan-to-value (LTV) ratio of up to 85 per cent. The new norms allow borrowers to access up to 85 per cent of their gold's value for loans up to Rs 2.5 lakh and 80 percent for loans between Rs 2.5 lakh and Rs 5 lakh. Loans above Rs 5 lakh will continue to carry an LTV cap of 75 per cent, inclusive of interest. The guidelines also simplify paperwork for smaller loans, waive credit checks, and limit end-use restrictions to priority sector lending. Stricter rules will apply to renewals and top-ups: borrowers must repay interest and meet credit checks before a renewal is approved. Lenders will also be required to disclose all charges upfront, including gold assaying and auction fees, enhancing transparency and borrower protection—measures expected to benefit NBFCs engaged in gold lending. These guidelines will apply uniformly to all regulated lenders—including banks, small finance banks, and NBFCs—and must be fully implemented by April 2026. At 11:30 am, shares of Muthoot Finance were up 3.8 per cent at Rs 2,540, while Manappuram Finance was trading 2.3 per cent higher at Rs 253.25. Over the past month, these gold loan providers have rallied 14 per cent and 10 per cent, respectively. Motilal Oswal noted that while there may be a slight impact on disbursement LTVs for gold loan NBFCs, this can be offset by encouraging borrowers to repay interest periodically and by rolling out shorter-tenure products. The brokerage added that regulatory parity in LTV norms could intensify competition between banks and NBFCs. Despite these changes, Motilal Oswal's ratings and estimates for Muthoot Finance, IIFL Finance, and Manappuram Finance remain unchanged, as the final guidelines are not expected to significantly impact gold loan growth over the medium to long term. Morgan Stanley sees Muthoot Finance and Manappuram Finance as key beneficiaries of the updated guidelines. The brokerage reiterated its 'equal-weight' stance on both lenders, while maintaining an 'overweight' view on Shriram Finance and Bajaj Finance, which could also benefit from the RBI's norms. Morgan Stanley expressed greater optimism for Muthoot Finance, citing its strong earnings outlook for Q1 and FY26 as a potential catalyst for further upside. However, it noted that Manappuram Finance's share price could remain capped around the Rs 236 open offer price set by Bain Capital until that transaction concludes.
