Morgan Stanley believes the RBI’s final gold loan guidelines — announced after the recent monetary policy — are less stringent than expected, especially for small-ticket loans, and should benefit key players in the sector.
The brokerage said the dilution of norms was confirmed by the RBI Governor during the post-policy press conference.
Top beneficiaries are expected to be Muthoot Finance and Manappuram Finance — both rated Equal-weight by Morgan Stanley — while Shriram Finance and Bajaj Finance (both Overweight) should also gain.
Morgan Stanley remains bullish on Muthoot Finance, stating that despite the recent strong rally, the stock looks set for further upside given its strong earnings outlook for Q1FY26 and the full FY26.
For Manappuram Finance, while the company also benefits from the diluted norms, Morgan Stanley expects the stock is unlikely to trade materially above Bain Capital’s open offer price of ₹236 until the transaction is completed.
Disclaimer: The views and target prices mentioned in this article are as stated by Morgan Stanley. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
