📌 At a Glance
Capri Global Capital Ltd (NSE: CGCL) is one of India’s most nimble-footed NBFCs — juggling MSME loans, affordable housing, construction finance, car loan distribution, and now even gold loans (because when in doubt, collateralize the mother-in-law’s bangles). Over the last 5 years, it has tripled its revenue, doubled its net worth, and 10x-ed its borrowings like a true Bharat fintech warrior. But is the market giving it the love it deserves? Not quite. The stock is down 29% in the past year even as profits are up 71% YoY. Welcome to India’s NBFC circus.
🏢 About the Company
Capri Global Capital Ltd is a diversified NBFC that has been steadily morphing into a multi-segment lending platform. Their product bouquet includes:
- MSME Loans (since FY13)
- Affordable Housing Finance (since FY17)
- Construction Finance (since FY11)
- Car Loan Distribution (since FY22)
- Gold Loans (since FY22)
And no, they haven’t launched a BNPL app yet — probably because they don’t want to be the next Paytm.
👨💼 Key Managerial Personnel (KMP)
- Rajesh Sharma – Managing Director, the face and force behind CGCL’s hyper-expansion across sectors.
- Kedar Deshpande – CFO, handles the numbers while interest expenses balloon.
- Independent Directors include industry veterans across banking and finance — to add credibility to their lending binge.
📊 Financials (FY21 to FY25)
| ₹ in Cr | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 737 | 981 | 1,465 | 2,313 | 3,248 |
| Net Profit | 177 | 205 | 205 | 279 | 479 |
| EBITDA Margin | 73% | 63% | 58% | 56% | 62% |
| ROE | 11% | 10% | 9% | 10% | 12% |
| EPS (₹) | 2.15 | 2.49 | 2.48 | 3.39 | 5.80 |
| Book Value (₹) | — | — | — | — | 52.2 |
| Borrowings | 3,769 | 4,832 | 7,511 | 10,407 | 15,577 |
🧠 Fun Fact: Borrowings grew 4x in 5 years. And yet, their ROCE still hovers around 11%, proving that debt-fueled growth doesn’t always mean efficient returns.
📈 Stock Performance
- CMP: ₹182 (as of June 9, 2025)
- 52W High/Low: ₹236 / ₹151
- Stock Price CAGR:
- 5-Year: 38%
- 3-Year: -3%
- 1-Year: -29%
🎯 Despite a 24.3% profit CAGR, the stock’s underperformance in the last year suggests investor fatigue or simply “NBFC pe discount chalu hai” mode.
🧮 Forward-Looking FV Estimate (Edu Style)
Let’s project FY26 PAT at ₹650 Cr (approx. 35% growth from FY25) with a conservative P/E range of 20–25x.
Fair Value Estimate = ₹130 to ₹163 per share
Wait… CMP is ₹182? Yep, already priced beyond fundamentals, unless they do a big bang PE rerating or an IPO for their gold loan vertical.
🔍 Segment & Business Mix Breakdown
While the company doesn’t explicitly break down product-wise revenue, trendlines show:
- Gold loans have scaled aggressively post-2022.
- Affordable housing and MSME segments continue to drive majority of the loan book.
- The company launched AutoPay for gold loans in June 2025 — a move to reduce NPA risk and give lenders peace of mind.
💰 Balance Sheet Highlights
- Reserves up from ₹1,682 Cr in FY21 → ₹4,222 Cr in FY25
- Borrowings surged from ₹3,769 Cr to ₹15,577 Cr in 5 years
- Cash flow from ops = negative almost every year, as capital is locked in loan disbursements (typical for NBFCs)
- Assets under management (AUM) growing rapidly
📉 Red Flag: Cash flow from operations in FY25 is –₹4,312 Cr. This is not a startup, folks. Liquidity management should be tighter.
🧾 Shareholding Pattern (Mar 2025)
| Category | Stake |
|---|---|
| Promoters | 69.87% (↓ from 74.68% in 2022) |
| FIIs | 0.98% |
| DIIs | 14.52% |
| Public | 14.62% |
👀 FII holding has increased, but promoters have steadily sold ~5% stake in the past 3 years. That’s either diversification… or dilution.
🧠 EduInvesting Take
Capri Global is like that overachieving cousin who picks up every new hobby — gold loans, housing, MSME, auto loans — but you’re not sure which one they’ll master.
✅ Positives:
- Diversified loan book = lower segment risk
- 5-year PAT growth = impressive
- Margin expansion and tight cost control
- Consistent dividend (even if tiny)
❌ Negatives:
- Valuation is hot. P/E 31+ for an NBFC with 11% ROE?
- Cash flow stress is real. Negative CFO is not a joke.
- Borrowings ballooning. A debt trap if not carefully managed.
- Promoter stake sale over 3 years is not confidence-inspiring.
🎭 Capri might need to spin off its gold loan biz or rope in a fintech partner to unlock real value — else it risks becoming “just another NBFC” in a crowded field.
⚠️ Risks & Red Flags
- Rising Interest Rates: Will pressure NIMs and elevate NPA risks, especially in MSME.
- Liquidity Crunch: Negative operating cash flow for multiple years.
- Valuation Mismatch: Trading at >3.3x book, which is high for an NBFC with no bank license.
- Promoter Selling: Never a great look, especially when coupled with debt spikes.
🧩 Final Words
Capri Global has executed well, expanded wisely, and avoided headline-grabbing disasters. But at current valuations, you’re paying a premium for future perfection — which rarely pans out in Indian NBFC land.
If the management tightens cash flows and unlocks value via partnerships or listing subsidiaries, this stock could break out. Until then, it’s a solid story riding on borrowed fuel.
Author: Prashant Marathe
Date: June 9, 2025
Tags: Capri Global, NBFC, MSME lending, Gold Loans, EduInvesting 5-Year Recap, Q4 FY25, Financial Results, NBFC stock analysis, India finance
