The target segment of low ticket gold loans have not recovered. Both Muthoot and Manappuram are now diversifying to segments outside of gold loans which to my mind is a good thing. Manappuram is already delivering good numbers on the microfinance business. Management has the track record and intent to improve their business footprint. Muthoot is also adding more branches. Most of the negatives are in the price and one will need to wait it out. Invested and hence biased.
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