The direct impact of the recent fall in gold and silver prices is now being seen on gold loan companies. Shares of Muthoot Finance have fallen by about 3% and Manappuram Finance by about 1.45%. Muthoot has slipped nearly 6% from the all-time high made in October, while Manappuram has also fallen by about 5%. In the last few months, when gold prices had increased, there was a tremendous rally in the shares of these two companies. The reason was clear – when gold prices increase, the loan value and collateral value also increases, which increases the revenue growth expectations of these companies. But now due to stoppage of bullion rally and return of risk-on sentiment of investors, pressure on Gold Loan stocks has increased. Despite this, so far in 2025, Muthoot Finance has registered a gain of about 49% and Manappuram Finance has registered a gain of about 50%. Meanwhile, gold prices on MCX recovered 3% on Thursday to reach an intraday high of ₹1,24,233 per 10 grams.
Gold loan stocks are affected by the fall of gold! Heavy pressure in Muthoot-Manappuram, know the reason. Money Live | Gold prices fall impacting gold loan stocks! Muthoot-Manappuram under significant pressure, find out why
