Today, our focus shifts to Capri Global Capital (CGCL), a notable NBFC lending company commanding a market capitalization exceeding fifteen thousand crore INR. Capri Global specializes in gold loans, MSME loans, and home loans, drawing significant attention within the financial landscape.
Delving into Capri Global’s trajectory, we aim to unravel the intricacies of its share price projections. Amidst its strengths in the financial domain, this company faces a set of compelling strengths and concurrent challenges, shaping the narrative surrounding its future.
This exploration ventures into the realm of deciphering Capri Global Capital’s anticipated trajectory in the impending months and years. Brace yourself for an insightful journey as we navigate the potential course of Capri Global’s share prices, offering a guiding beacon in the intricate realm of investment.
About Capri Global Capital
Capri Global Capital stands out as a versatile financial entity that has significantly broadened its horizons since its inception. Beginning its journey in 2011 with construction finance, they expanded into MSME lending in 2013 and housing finance in 2016, marking strategic moves that fortified their foothold in the financial market.
In their MSME Finance division, Capri Global commands a substantial share, managing 51% of assets under management (AUM) in FY20. They offer business loans against diverse property types, spanning from ₹0.05-0.75 crores, supporting small and medium-sized enterprises with crucial financial assistance for up to 15 years.
Their Construction Finance arm, accounting for 24% of assets in FY20, extends loans to real estate developers ranging from ₹7-25 crores, facilitating the growth of this sector.
Capri Global’s Housing Finance segment, contributing 22% to their portfolio in 2020, plays a pivotal role in enabling homeownership, particularly for medium-income individuals in Tier-II and III cities.
The company also engages in Indirect Lending, serving retail-focused NBFCs with net worth exceeding ₹50 crores, offering loans ranging from ₹5-50 crores.
Capri Global’s expansion strategy has transcended geographical boundaries, venturing beyond Maharashtra into states like Delhi, Gujarat, Madhya Pradesh, and Rajasthan, amplifying its reach and diversification.
Their distinctive Own Sourcing Model, facilitating 100% in-house loan sourcing, grants them control and unlocks cross-selling opportunities, particularly in insurance.
Boasting a network of 87 branches across 8 states and union territories and robust collaborations with lending partners such as SBI, LIC, HDFC Bank, Canara Bank, and Axis Bank, Capri Global has etched a commendable presence within the financial landscape.
CGCL Q2 Fy2024 Key Points And Summary:
- CGCL witnessed a substantial 77% Year-on-Year increase in Net Interest Income (NII).
- Spreads exhibited a solid improvement of 51 basis points Year-on-Year, reaching 7.0%.
- The Cost-to-Income (C/I) ratio improved from 68.2% to 66.0%, standing at approximately 50% when adjusted for the Gold Loan segment.
- Consolidated Profit After Tax (PAT) reached Rs636 million, indicating a 38% Year-on-Year increase, despite a slight -2% Quarter-on-Quarter change attributed to a negative charge linked to the Gold Loan business.
- Asset Under Management (AUM) saw a robust 61% Year-on-Year growth, reaching Rs112,262 million, with disbursals surging to Rs26,869 million, a significant 128% Year-on-Year increase.
- Capital Adequacy Ratio (CAR) remained stable at 37.2%, complemented by a consistent Long-Term credit rating of CARE A+ for both CGCL and CGHFL.
- CGCL’s branch network expanded impressively by 6.9 times Year-on-Year, totaling 849 branches.
- The staff count witnessed substantial growth, increasing 2.4 times Year-on-Year to 9,760 employees.
Recent News Around CGCL
- Capri Global Capital’s stock is trading at a premium of 4.32 times its book value, indicating an expensive valuation.
- The company faces challenges with a low-interest coverage ratio, impacting its financial flexibility.
- Over the last three years, Capri Global Capital has maintained a modest return on equity (ROE) of 9.48%, suggesting moderate investor returns.
- Its dividend payout ratio has consistently remained low at 4.76% of profits over the same period.
- Concerns arise due to the decline in promoter holding by 5.03% over the last three years, raising governance and ownership stability concerns.
- The company’s loan portfolio maintains a consistent average ticket size of ₹1.6Mn with a conservative loan-to-value ratio below 60%.
- Capri Global Capital emphasizes secure lending, with over 85% of collateral being self-occupied residential property.
- Noteworthy technological advancements include in-house tech teams, AI-based origination systems, and platforms for enhanced data analytics and cross-selling opportunities.
CGCL Shareholding Patterns
The shareholding structure of CGCL displays a stable trend in promoter holdings, remaining within a narrow range over time. As of September 2023, the promoters retain approximately 69.91% of the company’s shares.
Foreign Institutional Investors (FIIs) previously held a notable 9.08% stake in March 2017, but their ownership has steadily decreased, resting at 0.63% by September 2023.
Domestic Institutional Investors (DIIs) had a minimal initial holding, which has substantially increased over the years. As of September 2023, DIIs hold a significant 14.35% of CGCL’s shares.
Public shareholders have exhibited some fluctuations, experiencing a slight decline from 21.80% in March 2019 to 15.11% by September 2023.
The count of shareholders has seen substantial growth, reflecting an expanding investor base, reaching 7,053 shareholders by September 2023.
In summary, CGCL’s shareholding pattern showcases steady promoter ownership, a decline in FII stakes, considerable growth in DII ownership, consistent government absence, and a slight reduction in public ownership. The escalating number of shareholders signifies an increasing interest in the company’s shares.
Capri Global Capital Share Price Target 2024 To 2030
Capri Global Capital Share Price Target 2024
| When | Maximum Price | Minimum Price |
| January 2024 | ₹833.61 | ₹724.88 |
| February 2024 | ₹850.63 | ₹739.67 |
| March 2024 | ₹867.99 | ₹754.77 |
| April 2024 | ₹842.70 | ₹732.79 |
| May 2024 | ₹830.25 | ₹721.96 |
| June 2024 | ₹860.14 | ₹747.95 |
| July 2024 | ₹851.54 | ₹740.47 |
| August 2024 | ₹885.60 | ₹770.09 |
| September 2024 | ₹921.02 | ₹800.89 |
| October 2024 | ₹902.96 | ₹785.19 |
| November 2024 | ₹930.05 | ₹808.74 |
| December 2024 | ₹953.30 | ₹828.96 |
Throughout 2024, the share prices of CGCL are predicted to exhibit fluctuations. Early months, spanning from January to May, are expected to showcase prices ranging between ₹724.88 and ₹850.63. This trend is anticipated to persist in June and July, maintaining a range from ₹747.95 to ₹851.54.
August could potentially witness an upsurge, with prices expected to hover between ₹770.09 and ₹885.60. September might see a broader price spectrum, with an expected range from ₹800.89 to ₹921.02.
In the final quarter of the year, from October to December, prices are projected to fluctuate within ₹785.19 to ₹953.30. These forecasts hint at potential price volatility, with varying high and low price points anticipated each month throughout 2024 for CGCL’s shares.
CGCL Share Price Target 2025
| When | Maximum Price | Minimum Price |
| January 2025 | ₹972.37 | ₹747.98 |
| February 2025 | ₹997.30 | ₹767.16 |
| March 2025 | ₹1,036.20 | ₹797.08 |
| April 2025 | ₹1,015.88 | ₹781.45 |
| May 2025 | ₹986.29 | ₹758.69 |
| June 2025 | ₹1,030.67 | ₹792.83 |
| July 2025 | ₹1,010.47 | ₹777.28 |
| August 2025 | ₹1,041.72 | ₹801.32 |
| September 2025 | ₹1,078.18 | ₹829.37 |
| October 2025 | ₹1,106.21 | ₹850.93 |
| November 2025 | ₹1,133.87 | ₹872.20 |
| December 2025 | ₹1,162.21 | ₹894.01 |
In 2025, CGCL’s share prices appear to be on a rollercoaster ride, particularly at the year’s outset. January might witness swings between ₹747.98 on the low end and ₹972.37 on the high end, resembling a see-saw effect with fluctuating prices.
As February unfolds, the rollercoaster ride persists. Prices are estimated to range from ₹767.16 to ₹997.30, indicating continued market volatility.
Moving into the warmer months of June and July, there’s a potential upward trend. Share prices are anticipated to rise between ₹777.28 and ₹1,010.47 in July, resembling a market catching some optimistic rays.
August brings a shift in tone, with prices expected to range from ₹801.32 to ₹1,041.72, signaling possible market strength. The momentum continues through September and October, with prices dancing between ₹829.37 to ₹1,078.18 in September and ₹850.93 to ₹1,106.21 in October.
As the year draws to a close in November and December, anticipated price ranges are ₹872.20 to ₹1,133.87 in November and ₹894.01 to ₹1,162.21 in December, indicating a strong finish to the year. Overall, 2025 appears to be a financial adventure, marked by fluctuating values throughout the year.
Capri Global Capital Share Price Target 2026 To 2030
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹1,220.32 | ₹854.23 |
| 2027 | ₹1,342.35 | ₹939.65 |
| 2028 | ₹1,879.30 | ₹939.65 |
| 2029 | ₹1,627.10 | ₹813.55 |
| 2030 | ₹2,115.23 | ₹1,480.66 |
Over the upcoming half-decade, CGCL’s shares are projected to traverse a varied landscape, indicating a mix of potential growth, fluctuations, and market dynamics.
Starting in 2026, the expected price range, stretching from ₹854.23 to ₹1,220.32, suggests possible market oscillations and fluctuations.
As the trajectory advances into 2027, the projected range widens from ₹939.65 to ₹1,342.35, indicating a potential for growth and dynamic market trends, fostering possibilities for investors.
By 2028, the price spectrum could sway between ₹939.65 and ₹1,879.30, implying substantial swings in the market and possibly posing opportunities amidst fluctuations.
Entering 2029, the forecasted range from ₹813.55 to ₹1,627.10 indicates potential price variability, urging investors to navigate potential market shifts.
Lastly, in 2030, an even broader spectrum of ₹1,480.66 to ₹2,115.23 envisages heightened market volatility, showcasing potential opportunities and challenges for investors and stakeholders alike.
These anticipated price movements over the next five years signal an environment of fluctuating values and opportunities, urging stakeholders to be attentive to evolving market conditions and strategic investment decisions.
Capri Global Capital Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Sales + | 589 | 717 | 737 | 981 | 1,464 |
| Expenses + | 191 | 203 | 201 | 368 | 621 |
| Operating Profit | 398 | 514 | 536 | 613 | 843 |
| OPM % | 68% | 72% | 73% | 63% | 58% |
| Other Income + | 3 | 2 | 0 | 1 | 1 |
| Interest | 207 | 283 | 290 | 332 | 532 |
| Depreciation | 7 | 11 | 11 | 10 | 44 |
| Profit before tax | 187 | 222 | 236 | 273 | 268 |
| Tax % | 27% | 27% | 25% | 25% | 24% |
| Net Profit + | 136 | 161 | 177 | 205 | 205 |
| EPS in Rs | 6.61 | 7.86 | 8.62 | 9.96 | 9.93 |
| Dividend Payout % | 5% | 2% | 5% | 4% | 5% |
Over the span of four years from March 2019 to March 2023, CGCL has showcased a consistent upward trajectory in sales and profitability. The revenue surged to ₹1,464 million by March 2023, highlighting a steady sales growth trend.
Operating costs surged too, reaching ₹621 million in March 2023, signifying escalated operational expenses. The operating profit margin fluctuated, peaking at 73% in March 2021 and decreasing to 58% by March 2023, showcasing variable operational efficiency.
Simultaneously, interest expenses rose steadily from ₹207 million in March 2019 to ₹532 million in March 2023. Depreciation costs followed suit, ascending from ₹7 million to ₹44 million during the same period.
The tax rate demonstrated stability, hovering between 24% and 27%, while net profit climbed from ₹136 million in March 2019 to ₹205 million in March 2023, depicting an overall positive trend.
Earnings per share exhibited consistent growth, escalating from ₹6.61 to ₹9.93 in March 2023, indicating an increase in earnings per share.
Despite these fluctuations, CGCL’s dividend payout percentage remained relatively low, suggesting a strategic focus on reinvesting earnings for future expansion rather than distributing profits to shareholders.
In essence, while Capri Global experienced soaring sales and profitability over the four-year span, rising expenses, particularly in interest and depreciation, posed challenges. Despite this, the company managed to uphold a commendable level of profitability, emphasizing growth in earnings per share and strategic reinvestment for future expansion.
FAQS
What Does Capri Global Capital’s Market Value Reflect?
Capri Global Capital’s market value, indicated by its Market Cap, currently stands at ₹15,527 crore.
What Is the Current Share Price of Capri Global Capital?
The prevailing share price of Capri Global Capital stands at ₹757, as per the most recent data available.
How Does Capri Global Capital’s P/E Ratio Stack Up?
Capri Global Capital exhibits a P/E ratio of 70.6, with a median P/E of 41.6, showcasing the variance in valuation metrics.
What Trend Does Capri Global Capital’s Return on Equity (ROE) Exhibit?
Capri Global Capital’s Return on Equity (ROE) has maintained a relatively stable ROE at 7.46%, portraying a moderate level of return on equity.
Should One Invest In Capri Global Capital (CGCL)?
Capri Global Capital has shown consistent growth in its assets under management (AUM) over the past few years, reaching significant milestones. For instance, the AUM surged from ₹72,000 million in 2020 to ₹112,262 million in 2023, indicating a robust 56% growth.
However, despite this growth, the company faced challenges in managing its operational expenses, which climbed notably from ₹319 million in 2020 to ₹621 million in 2023. This increase highlights rising operational costs, affecting the company’s profit margins.
The operating profit margin (OPM) depicted fluctuations, hitting a peak of 73% in 2021 but declining to 58% in 2023. This variability suggests a potential challenge in maintaining consistent profitability.
Moreover, Capri Global Capital’s interest expenses followed an upward trajectory, escalating from ₹207 million in 2019 to ₹532 million in 2023. This rise in interest obligations could impact the company’s financial flexibility.
Despite these concerns, the company has managed to incrementally grow its net profit, climbing from ₹136 million in 2019 to ₹205 million in 2023. Additionally, the earnings per share (EPS) have shown a steady upward trend, increasing from ₹6.61 in 2019 to ₹9.93 in 2023.
However, it’s crucial to note that the company’s dividend payout ratio has remained consistently low, indicating a conservative approach toward distributing profits to shareholders. Moreover, the return on equity (ROE) has stabilized around 7.46% in 2023, suggesting moderate but consistent returns for investors.
In conclusion, while Capri Global Capital exhibits strengths in AUM growth and net profit increment, the company faces challenges in managing expenses, maintaining profit margins, and a relatively conservative dividend policy. Investors should conduct thorough due diligence, considering these financial aspects alongside their investment objectives before making an investment decision.
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