Gold loan stocks in focus; Muthoot Fin, Manappuram Fin gain up to 15%

Muthoot Finance surged 15% to Rs 478 on Friday, erasing its entire Thursday's 7% fall, Manappuram Finance rallied 7% to Rs 85 on BSE on back of heavy volumes.

Shares of gold loan companies like Muthoot Finance and Manappuram Finance rallied up to 15% on  BSE on back of heavy volumes after Muthoot Finance reported 21% year-on-year (YoY) growth in assets under management (AUM) to Rs 359.56 billion as of September 2018 (Q2FY19).

Muthoot Finance has surged 15% to Rs 478 on Friday, erasing its previous day’s 7% fall, as the company reported highest ever quarterly accretion in gold loans, resulting in all-time high loan book as well as gold stock under possession. The subsidiaries too witnessed positive trends in growth & asset quality.

“Gold loans growth of