New Delhi, April 15 -- Listed gold loan financiers are in the spotlight as price of gold inches higher. On the Multi Commodity Exchange (MCX), gold is currently trading above the Rs.72,000 per 10 grams mark. This rise in prices means a higher value of collateral and aids gold loan assets under management (AUM) of lenders. In the March quarter (Q4FY24), spot gold prices on the MCX increased 16% sequentially.

While sentiment is positive, the benefits on earnings can accrue with some lag. Manappuram Finance Ltd's gold loan book is likely to strengthen to 3% sequentially in Q4FY24, estimate analysts at Dolat Capital Market. In Q3, Manappuram's gold loan book was flat sequentially.

For peer Muthoot Finance Ltd, the gold loan book is expected...