What makes investments attractive? The promise of high returns. And right now, gold’s gleam is captivating investors. While its practical applications are limited, gold’s allure as a safe-haven asset, driven by the universal desire for aesthetic appeal, ensures consistent demand. Currently, gold not only looks good but is performing exceptionally well.

Bain’s Big Bet on Gold

With gold prices soaring and central banks increasing their reserves, private equity firms are keen to capitalise on this golden opportunity. Bain Capital’s recent investment of ₹4,385 crore in Manappuram Finance, India’s second-largest gold financier, exemplifies this trend. This investment signals strong confidence in the gold loan sector, which is currently experiencing a boom alongside record-breaking gold prices. Indians’ enduring fascination with gold, coupled with the innovative use of gold loans, continues to fuel this growth.

Manappuram’s Valuation Gets a Lift

Private equity involvement often enhances a company’s appeal, bringing professional expertise and a drive for improved profitability. Manappuram Finance, while possessing a strong gold loan franchise built by its promoters, recognises the need for external capital and guidance to evolve into a diversified financial conglomerate. Bridging the valuation gap with market leader Muthoot Finance is crucial, and Bain Capital’s participation is expected to attract more investors. The presence of a reputed firm like Bain Capital in Manappuram’s boardroom and operational strategy is perceived as a significant positive.

Bajaj Finance Still a Hot Favourite

Meanwhile, Bajaj Finance continues its impressive run in 2025. Despite management changes, with Rajeev Jain’s promotion to Vice Chairman and Anup Kumar Saha’s appointment as Managing Director, experts remain optimistic about the stock’s future. On Business Today TV’s Market Today, analysts like Mayuresh Joshi and Mitesh Panchal highlighted Bajaj Finance’s robust fundamentals, leadership in the NBFC sector, and technological advancements. They believe the stock, currently trading around ₹8,900, has the potential to reach ₹9,800 to ₹10,000, even hitting five figures soon. This positive outlook is reinforced by strong technical indicators and institutional holdings.

Cautious Optimism Prevails

While Bain Capital’s operational influence and managerial vision at Manappuram are yet to fully unfold, analysts are cautiously optimistic. The inherent strength of the gold market provides a safety net. Similarly, Bajaj Finance’s continued growth trajectory, backed by technological innovation and strong market position, suggests a promising outlook.

Is the current market sentiment sustainable? While appearances can be deceptive, the underlying demand for gold and the growth potential of well-managed NBFCs like Bajaj Finance indicate a positive trajectory for these finance stocks in the near term.