📌 At a Glance
Capital India Finance Ltd (CMP ₹37.42) just crossed a major psychological milestone — ₹1,000 Cr in AUM for FY25. With 7% YoY AUM growth, PAT of ₹11.78 Cr, and a net NPA of just 0.98%, this under-the-radar NBFC is positioning itself as a clean, capital-efficient MSME lender.
Is the market noticing? Barely. But with a CRAR of 36% and D/E of 1.06x, it might just be the safest ₹500 Cr market cap NBFC you’ve never heard of.
🏢 About the Company
| Metric | Value |
|---|---|
| Name | Capital India Finance Ltd (CIFL) |
| CMP (May 26, 2025) | ₹37.42 |
| Market Cap | ~₹470 Cr |
| Sector | NBFC (Middle Layer, MSME-focused) |
| Registered | RBI Regulated NBFC |
| Branches | Expanding to 100 by FY27 |
| Subsidiaries | Capital India Home Loans, Rapipay Fintech, RemitX |
CIFL isn’t just an NBFC — it’s spawning a micro-fintech ecosystem around MSMEs, foreign exchange (RemitX), prepaid cards, and now neobanking.
📊 FY25 Financial Snapshot (Standalone)
| Metric | FY25 | FY24 | YoY |
|---|---|---|---|
| AUM | ₹1,004.5 Cr | ₹935.1 Cr | 🔼 7.4% |
| Total Income | ₹184.45 Cr | NA | — |
| PAT | ₹11.78 Cr | NA | — |
| Net NPA | 0.98% | ✅ Sub-1% | |
| Gross NPA | 1.83% | ✅ Low-risk | |
| CRAR | 36.08% | 🟢 Solid cushion | |
| Debt/Equity | 1.06x | ✅ Conservative | |
| Net Worth | ₹621.5 Cr | — |
💥 Best part? They’ve done this without over-leveraging or chasing unsecured loan madness.
📈 Q4 FY25 Disbursement
| Metric | Q4 FY25 | Q3 FY25 | QoQ Growth |
|---|---|---|---|
| Disbursement | ₹172.7 Cr | ₹97.2 Cr | 🔼 78% |
The last quarter saw an explosion in disbursement activity, hinting at growth gears kicking in for FY26.
💸 Debt Position & Funding
| Metric | FY25 |
|---|---|
| Debt Raised | ₹400 Cr |
| Lenders | 20 (added 6 new in FY25) |
| Outstanding Debt | ₹666.17 Cr |
| Credit Rating | “A” (Infomerics) ✅ |
This is how responsible leverage looks like — diversified lender base, no credit overkill, and a rating upgrade path.
💼 Subsidiary Update
🏠 Capital India Home Loans Ltd. (CIHL)
| Metric | FY25 |
|---|---|
| Total Income | ₹74.55 Cr |
| PAT | ₹2.78 Cr |
| AUM | ₹490.03 Cr (↑9%) |
💥 Exit update: CIFL sold the entire stake in CIHL to Weaver Services for ₹266.53 Cr — approved by RBI in May 2025.
That’s a major cash unlock + strategic realignment, allowing CIFL to double down on MSME lending.
🏦 Rapipay Fintech Pvt Ltd
| Metric | FY25 |
|---|---|
| Total Income | ₹360 Cr |
| Q4 Cash Profit | ₹1.54 Cr |
| Loss Reduction | 35% YoY |
Rapipay is shaping up into a phygital fintech player — neobanking + prepaid cards + MSME credit. Losses are narrowing, and monetization seems around the corner.
🧠 EduInvesting Take
“Capital India isn’t trying to be a flashy fintech. It’s trying to quietly become India’s most boring, profitable MSME bank-in-a-box.”
They’re:
- 🧾 Keeping NPAs under 1%
- 💰 Unlocking capital from home loan divestment
- 📈 Scaling disbursements at 78% QoQ
- 🧠 Building a full-stack ecosystem (loans, FX, fintech infra)
Yet, the stock trades below book value and flies under every analyst’s radar.
🧮 Forward-Looking Valuation
Let’s estimate FY26:
- FY26 PAT: ₹16 Cr (conservative 35% YoY growth)
- Shares Outstanding: ~12.6 Cr
- EPS: ₹1.27
- Apply P/E = 15x (conservative for NBFC)
👉 Fair Value = ₹1.27 × 15 = ₹19.05
💡 But wait: Book Value ~₹50/share → CMP is ~25% below book
💰 Real fair value = ₹60–₹65 range, if re-rated on fundamentals.
➡️ Upside from CMP ₹37.42 = 60–70%
✅ Positives
- 📈 Disbursements picking up pace
- 🧾 Low NPAs and strong CRAR
- 🏦 Lean, well-capitalized, steady performer
- 💰 Sale of housing subsidiary = cleaner focus
- 💳 Rapipay could be a hidden fintech play
⚠️ Risks
- 🧍♂️ MSME segment = higher risk if economy slows
- 🧑⚖️ Fintech ambitions need regulation clarity (especially Rapipay)
- 🐌 Market may undervalue CIFL due to lack of visibility
- 💸 Execution risk if branch expansion doesn’t drive RoA uplift
- 📉 Low liquidity in stock = volatile price swings
🧾 Final Word
Capital India Finance Ltd is what most NBFCs claim to be but few actually are:
- Capitalized ✅
- Focused ✅
- Clean NPAs ✅
- Growing disbursements ✅
- Monetizing non-core assets ✅
Yet, it trades like a dusty legacy stock. Which means… this might be the inflection point.
Want a low-risk, low-hype NBFC with fintech undercurrents?
CIFL might just be the undervalued compounder in your watchlist.
🗓️ Published: May 26, 2025
✍️ By: Prashant Marathe
Tags: CIFL FY25 results, MSME NBFC India, Capital India Home Loan sale, Rapipay fintech, NBFC undervalued stocks, NSE CIFL, EduInvesting
