Spot gold gained 1.1 per cent to $2,662.98 per ounce, as of 01:41 PM ET (1841 GMT). US gold futures settled 1 per cent higher at $2,685.50
While large players may not be impacted, lesser-vintage firms could have to mend ways
The company posted a consolidated net profit of Rs 1,145 crore during the third quarter of 2023-24
CRISIL Ratings believes MFL's capitalisation and asset quality will remain strong supported by its gold loan business.
Increased competition, lower spreads, moderate growth are among hurdles to overcome
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Analysts believe the continued aggression of banks and fintechs would make gold loan NBFCs pivot their business models to lower spreads and margin
Shares of gold finance firms, such as Muthoot Finance and Manappuram Finance, may come under pressure because of the softness in the price of yellow metal
Gold financing company says it will hire 600 more people for the expansion
Analysts have cut earnings growth forecast but see the stocks giving up to 34.4 per cent (Muthoot) and 58.7 per cent (Manappuram) returns on attractive valuation
The share price of Muthoot Fin has risen 31% over last year, but Manappuram underperformed with 9% return
Muthoot Finance is headed towards Rs 1,700 levels
While gold experts remain bullish on the yellow metal, analysts tracking the two non-bank finance companies (NBFCs) believe near-term headwinds continue to dampen outlook for the stocks
The trend in Muthoot Finance's stock looks promising as it is trading well above the 200-days moving average (DMA) placed at Rs 1,059 levels
Risks are similar to loan against property; both are dependent on pricing strength and demand of the underlying assets
Despite the strong gains in gold and silver prices, many experts believe the momentum in precious metals will continue
Quality stocks in banking and financial services sector are still available at attractive valuations
Rally factors in strong performance of Muthoot and Manappuram
The commentary by technical analysts has moved from 'sell on rallies' to 'buy the dips', with most expecting the bullish momentum, seen over the past three weeks, to sustain
Backing of a liquid collateral and pricing power augur well