Manappuram Finance Shares Surge Nearly 6% as Gold Prices Hit Record High

Shares of Manappuram Finance experienced a robust uptick of nearly 6% during early trades on November 29, propelled by a surge in Indian gold prices to an all-time high.

The price of gold surpassed the Rs 62,800 per 10 grams mark at the opening, providing a significant boost to the stocks of the gold finance company, Manappuram Finance.

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Adding to the positive momentum, analysts at Morgan Stanley have given an overweight rating to the stock, setting a target price of Rs 200. In a recent analyst meeting, the company reaffirmed its guidance for 20% loan growth and a 20% Return on Equity (ROE) in FY2024, primarily driven by non-gold businesses. Specifically, for gold loans, they indicated an 8% growth in FY2024, with a focus on maintaining yields at 21-22%.

As of 11:56 am, the shares were trading at ₹158.95, reflecting a gain of 4.92%.