CP Capital Ltd: Coaching Kids by Day, Collecting Loans by Night 🎓💸
1. At a Glance
CP Capital (earlier Career Point Ltd) is like that Kota coaching teacher who also moonlights as a loan shark. The company earns ~50% revenue from education (schools, coaching, universities) and the other ~50% from NBFC arm Srajan Capital (loans, financing). FY25 numbers: revenue ₹68 Cr, PAT ₹41 Cr, OPM a jaw-dropping 73%, but sales growth stuck in reverse gear. CMP ₹147, P/E 6.5x, P/B 0.5x. A stock trading cheaper than Kota mess fees, but with governance and growth questions lurking in the background.
2. Introduction
CP Capital started in 2000 as a pure-play education company, coaching kids for IIT-JEE, NEET, and other exams. From preschool to PhD, they built CP Universe, complete with schools, hostels, and universities (Career Point University in Kota & Hamirpur). But education alone wasn’t enough drama. Enter Srajan Capital—its NBFC arm—giving loans for education infra, property, and businesses.
By FY23, half the money was from classrooms, the other half from credit desks. Then came the NCLT-approved restructuring:
Education demerged into Career Point Edutech Ltd.
NBFC (Srajan Capital) merged into CP Capital.
Translation: They’ve become a hybrid—half Kota coaching institute, half mini-Bajaj Finance.
But the market isn’t impressed—stock is down 56% in 1 year, with volumes thinner than an IIT student’s social life. Investors are now wondering—will CP Capital be the next “Kota Factory” success story, or just another rerun of an NBFC that tried too hard?
3. Business Model – WTF Do They Even Do?
Think of CP Capital as two parallel careers:
Education Vertical 🎓
Test prep (franchisee, online, school-integrated).
CP World Schools & Gurukuls.
Two universities (Kota & Hamirpur).
E-learning (courses, study material, test series).
Consultancy, management, residential hostels.
NBFC Vertical 💸
Loans against property, infra, education loans.
Run by Srajan Capital, RBI-registered NBFC.
Contribution: ~50% of revenue.
Side Income
Leasing (hostels, infra).
Sale of study material.
Other consulting services.
Basically: They’ll prep your kid for IIT, house him in a hostel, give you a loan to pay for it, and lease the building to themselves. Full-stack capitalism.
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue (₹ Cr)
14.9
17.0
14.0
-12.3%
6.4%
EBITDA (₹ Cr)
11.0
16.0
12.0
-31.3%
-8.3%
PAT (₹ Cr)
10.8
12.0
9.0
-13.1%
20.0%
EPS (₹)
5.9
6.8
4.7
-13.2%
25.5%
Commentary: Margins are fat (75%+) thanks to interest income and low opex. But sales growth is sluggish, YoY down double-digits. PAT is stable, but that’s like a patient surviving in ICU—alive, but not thriving.
