Entering gold financing via an acquisition Quick Note

Research evidence excerpt

Entering gold financing via an acquisition Quick Note

Global Markets Research

Tata Capital TATC.NS TATACAP IN 13 July 2026

EQUITY: FINANCIALS

RatingEntering gold financing via an acquisition Remains Buy

Target price INR 400 RemainsQuick Note

Closing priceTata Capital today announced (link) the acquisition of an 88.6% stake in a Kerala-based gold 13 July 2026 INR 361

financing NBFC Yogakshemam Loans Limited (YogLoans) (unlisted). YogLoans’ AUM stood at

INR7.08bn as of FY26, about 0.3% of Tata Capital’s consolidated AUMs. Over 85% of YogLoans’

book is in gold loans, while the remaining comprises two-wheeler, business loans, consumer Research Analysts

durable and home loans. With the acquisition value capped at INR3.18bn and primary infusion of India FinancialsINR0.9bn, the deal valuation stood at 2x P/B (post-money), in our view. We believe Tata Capital

Shreya Shivani - NFASLcontinues to expand its presence in the higher-yielding product segment with its entry into gold shreya.shivani@nomura.com

finance. We maintain Buy and residual income methodology-based TP of INR400; stock currently +91 22 403 74804

trades at 2.4x FY28F.

Ankit Bihani - NFASL

Acquired both book and expertise; competition heating up, diversification is key ankit.bihani@nomura.com

+91 22 403 74135

• With this acquisition, Tata Capital is the latest entrant into gold financing. The current leadership

Shreyas Pimple - NFASL team of YogLoans (990+ employees led by Mr I. Unnikrishnan) will continue post-acquisition, shreyas.pimple@nomura.com

thus bringing expertise for Tata Capital. Mr. Unnikrishnan was associated with Manappuram +91 22 403 74029

Finance (MGFL IN, uncovered) as ED, Deputy CEO till 2014 (link). YogLoans currently has

162 branches, mainly in South India (link).