Muthoot, Manappuram Shares Ride Bullish Gold Wave: SEBI RA Flags Technicals, Regulatory Tailwinds

Muthoot Finance shares are displaying bullish technical momentum, driven by a positive setup across multiple indicators, according to SEBI-registered analyst Deepak Pal.

At the time of writing, Muthoot Finance shares were trading at ₹2,550.20, up 0.4%, while Manappuram Finance was at ₹268.00, up 1.2%.

According to Pal, Muthoot Finance shares demonstrated ongoing upward potential when analyzed through the Parabolic SAR, Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and trend-based moving averages.

Muthoot Finance maintains operations across more than 5,000 branches, while obtaining over 90% of its revenue through gold-backed lending activities.

Despite some diversification, Pal added that the company remains focused on the gold loan segment.

Pal also cited Manappuram Finance, based in Thrissur, as another major player in the sector with a significant share of lending from gold-collateralised credit. 

He noted the company's fast disbursal model, including through mobile platforms.

The analyst highlighted the Reserve Bank of India's new regulatory guidelines for gold loan NBFCs that were declared in June 2025 and will become effective on April 1, 2026.

The loan-to-value limit is now set at 85% applied to loans below ₹2.5 lakh, while 80% applies to loans between ₹2.5 lakh and ₹5 lakh, and 75% applies to loans that exceed ₹5 lakh.

He said loans up to ₹2.5 lakh will no longer require credit appraisal, easing access and documentation. 

The RBI has also allowed self-declaration of gold ownership and reduced end-use monitoring except for loans under Priority Sector Lending.

Pal noted that the framework introduces standardized valuation norms using IBJA or SEBI-recognised prices, mandatory loan agreements, and a seven-day turnaround to return pledged gold after repayment.

On Stocktwits, retail sentiment for Muthoot Finance was 'bearish' with 'normal' message volume, while Manappuram Finance saw 'bullish' sentiment accompanied by 'high' message volume.

Muthoot Finance shares have gained 15.2% year-to-date, while rival Manappuram Finance is up 39.5% in the same period.

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