Muthoot, Manappuram shares fall as yellow metal price dips following de-escalation of middle-east tensions

Shares of gold financing companies fell on Tuesday after the commodity’s prices eased following de-escalation of tensions in the middle-east.

Shares of Muthoot Finance were trading over 2.5% lower on Tuesday while Manappuram Finance shares were trading nearly 0.8% lower.

Spot gold was trading 0.7% lower at $2,310 per ounce on Tuesday morning, down from the highs of $2,391 per ounce level seen on Monday. According to media reports, Iran’s capital Tehran had witnessed explosions on Friday which was believed to be an Israeli attack. However, Tehran indicated it had no intentions of retaliating, the report said.

Market participants are now looking forward to the release of US gross domestic product numbers.

Both Muthoot Finance and Manappuram Finance reported upbeat numbers during the third quarter. Muthoot Finance reported a 14% year-over-year (y-o-y) rise in its net profit for the third quarter of fiscal year 2024 at ₹1,027 crore. The firm’s total income rose 19% y-o-y to ₹3,176 crore during the quarter while its loan assets under management (AUM) increased 23% to ₹71,182 crore.

The company’s capital adequacy ratio fell to 30.86 during the third quarter as compared to 33.29 in the same period of previous fiscal.

Meanwhile, Manappuram Finance reported a 46% y-o-y increase in its net profit for the third quarter at ₹575 crore. Its consolidated AUM)for Q3 stood at ₹40,385 crore, registering an increase of 27% over the corresponding quarter of FY23. Total consolidated operating income during the quarter stood at ₹2,305 crore, registering an increase of 34% from the year-ago quarter.

Shares of Muthoot Finance have gained close to 9% since the beginning of the year and have risen over 56% in the last one year. Manappuram Finance Stock has risen over 10% on a year-to-date basis and has gained over 48% in the last one year.