Capri Global Capital or CGCL is a NBFC lending company, that deals with Gold loans, MSME loans, and home loans with a market cap of more than fifteen thousand crore INR. Today, we turn our attention to Capri Global Capital, a company that has piqued the interest of many. With a strong foothold in the financial sector, Capri Global has displayed some compelling strengths, but it’s not without its challenges.
In this article, we embark on a journey to dissect Capri Global’s share price predictions. What do the numbers and trends tell us about where this company is headed in the coming months and years? Buckle up as we explore the future of Capri Global Capital’s share prices, and, hopefully, help you find some clarity in the world of investment.
About Capri Global Capital
Capri Global Capital is a versatile financial company. They started with construction finance in 2011, MSME lending in 2013, and housing finance in 2016.
In their MSME Finance segment, Capri Global plays a significant role in the market with 51% of assets under management (AUM) in FY20. They offer business loans against various property types with a ticket size ranging from ₹0.05-0.75 crores and tenors of up to 15 years, ensuring access to crucial financial support for small and medium-sized enterprises.
In Construction Finance, they manage 24% of assets in FY20, providing loans to real estate developers ranging from ₹7-25 crores.
For Housing Finance, they offer home loans for various needs, making homeownership possible in both big and small cities. This part of their business, which made up 22% of what they managed in the year 2020. It is super important because it makes owning a home possible for folks with medium incomes in Tier-II and III cities.
They also do Indirect Lending, catering to retail-focused NBFCs with net worth over ₹50 crores. The ticket size in this segment ranges from ₹5-50 crores.
Capri Global has expanded beyond Maharashtra to states like Delhi, Gujarat, Madhya Pradesh, and Rajasthan, diversifying its presence.
One of their distinctive practices is the Own Sourcing Model, where 100% of loan sourcing is done in-house. This model offers control and generates cross-sell opportunities for insurance.
With a branch network of 87 branches across 8 states and union territories and collaboration with lending partners like SBI, LIC, HDFC Bank, Canara Bank, and Axis Bank, Capri Global has established a notable presence in the financial sector.
CGCL Q1 Fy2024 Key Points And Summary:
- Improved Core Earnings: Notably, NII witnessed a substantial 77% YoY increase, while spreads exhibited a solid improvement of 51bps YoY, ultimately reaching 7.0%.
- Enhanced Operating Leverage: This improvement is further emphasized by the C/I ratio, which showed a positive shift from 68.2% in Q4FY23 to 66.0%. When adjusting for the Gold Loan business, it stands at approximately 50%.
- Consolidated PAT: Despite a slight -2% QoQ change, PAT managed to reach Rs636 million, marking an impressive 38% YoY increase. This change accounts for a negative charge of Rs229 million linked to the Gold Loan business.
- Strong AUM Growth: The growth trajectory for AUM remained robust, with a substantial 61% YoY increase that reached Rs112,262 million. Disbursals played a pivotal role, surging to Rs26,869 million, reflecting a significant 128% YoY upswing.
- Capital Adequacy: Capri Global Capital’s CAR remained stable at 37.2%, further underlined by a consistent Long-Term credit rating of CARE A+ for both CGCL and CGHFL.
- Branch and Staff Growth: The company’s branch network witnessed an impressive 6.9x YoY expansion, now comprising 849 branches. Additionally, the staff count grew significantly, marking a 2.4x YoY increase, reaching 9,760 employees.
Recent News
- Capri Global Holdings Sells Rs 43 Crore Worth of Indiabulls Housing Finance Shares in Open Market Deal (4 October)
- Capri Global Holdings Pvt Ltd (CGHL) has acquired a 51 percent stake in CarLelo, an online new car-selling platform, for ₹150 crore. (25 MAy)
- Promoters: The promoter’s holding CGCL has been relatively stable over the years, fluctuating within a narrow range. As of September 2023, they hold approximately 69.91% of the shares.
- FIIs (Foreign Institutional Investors): FIIs had a significant holding in March 2017 at 9.08%. However, their ownership has consistently decreased over time. As of September 2023, they hold 0.63% of the shares.
- DIIs (Domestic Institutional Investors): DIIs had a very marginal holding in the initial years, but their ownership has increased substantially. As of September 2023, they hold 14.35% of the shares.
- Public: Public shareholders have shown some fluctuations, but their holding has decreased slightly from 21.80% in March 2019 to 15.11% as of September 2023.
- Number of Shareholders: The number of shareholders has increased significantly over the years, reflecting a growing investor base. As of September 2023, there are 7,053 shareholders.
In summary, the shareholding pattern of CGCL indicates relatively stable promoter ownership, a decline in FII ownership, a substantial increase in DII ownership, consistent government absence, and a slight reduction in public ownership. The increasing number of shareholders suggests growing interest in the company’s shares.
| When | Maximum Price | Minimum Price |
| November 2023 | ₹790.84 | ₹718.95 |
| December 2023 | ₹816.94 | ₹742.67 |
As of October 31, 2023, CGCL’s share price is trading at Rs. 757.20, up 17.29% in the last 6 months.
In November 2023, we expect the CGCL share price to fluctuate between ₹718.95 (minimum) and ₹790.84 (maximum).
Finally, in December 2023, the expected share price for Capri Global is predicted to vary between ₹742.67 (minimum) and ₹816.94 (maximum).
| 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 |
In 2024, Capri Global’s share prices are anticipated to fluctuate. In the early months (January to May), prices are predicted to range from ₹724.88 to ₹850.63. This trend is expected to continue in June and July, with prices varying from ₹747.95 to ₹851.54.
August may see a potential increase, with prices ranging from ₹770.09 to ₹885.60. The price range is projected to expand further in September, with a minimum of ₹800.89 and a maximum of ₹921.02.
During the last quarter of the year (October to December), prices may experience a range of ₹785.19 to ₹953.30. These predictions suggest potential price volatility, with varying highs and lows expected in each month of 2024 for Capri Global.
| 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, things are looking pretty lively for Capri Global’s share prices. It’s like a rollercoaster ride, especially at the start. In January, we might see prices swing between ₹747.98 on the low end and ₹972.37 on the high end. It’s a bit like a see-saw, with prices going up and down.
As we roll into February, the rollercoaster continues. Prices are expected to range from ₹767.16 to ₹997.30, showing that the market is still in a bit of a spin.
Come summer, in June and July, things could heat up. Share prices might rise between ₹792.83 and ₹1,030.67 in June, and ₹777.28 to ₹1,010.47 in July. It’s like the market is catching some sun and feeling pretty optimistic.
August feels like a new chapter, with prices ranging from ₹801.32 to ₹1,041.72, hinting at some potential market strength. September and October keep the momentum going, with share prices projected to dance between ₹829.37 to ₹1,078.18 in September and ₹850.93 to ₹1,106.21 in October.
Finally, as the year comes to a close in November and December, the anticipated price ranges are ₹872.20 to ₹1,133.87 in November and ₹894.01 to ₹1,162.21 in December. It’s like a strong finish to the year, making 2025 a bit of a financial adventure with ups and downs all along the way.
| 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 |
- 2026: The expected CGCL share price range for the year 2026 is ₹854.23 (minimum) to ₹1,220.32 (maximum), indicating potential price fluctuations.
- 2027: Expected price range is ₹939.65 (minimum) to ₹1,342.35 (maximum), indicating growth and market dynamics.
- 2028: CGCL share Prices are anticipated to fluctuate between ₹939.65 (minimum) and ₹1,879.30 (maximum), showing potential for significant swings.
- 2029: Predicted range from ₹813.55 (minimum) to ₹1,627.10 (maximum), indicating price fluctuations.
- 2030: Prices are expected to have a broader range, varying between ₹1,480.66 (minimum) and ₹2,115.23 (maximum), signifying potential market volatility.
These projections reflect the expected price movements over the next five years, with potential growth, fluctuations, and variability in Capri Global’s share prices. Investors and stakeholders should be prepared for changing market conditions and opportunities during this period.
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% |
- Sales: Capri Global’s sales have consistently grown over four years, reaching ₹1,464 million in March 2023.
- Expenses: Operating expenses have increased to ₹621 million in March 2023, indicating rising operational costs.
- Operating Profit Margin (OPM): OPM fluctuated, with a peak of 73% in March 2021 and a decrease of 58% in March 2023.
- Interest: Interest expenses steadily rose from ₹207 million in March 2019 to ₹532 million in March 2023.
- Depreciation: Depreciation expenses increased from ₹7 million in March 2019 to ₹44 million in March 2023.
- Tax Percentage: Tax rates remained relatively stable, fluctuating between 24% and 27%.
- Net Profit: Net profit grew from ₹136 million in March 2019 to ₹205 million in March 2023.
- Earnings Per Share (EPS): Earnings per share have risen consistently, from ₹6.61 in March 2019 to ₹9.93 in March 2023. This suggests growth in earnings attributed to each share.
- Dividend Payout Percentage: Dividend payout percentage fluctuated but remained relatively low, indicating reinvestment of earnings for growth.
In conclusion, over the four-year period from March 2019 to March 2023, Capri Global has shown consistent growth in sales and profitability. However, CGCL has also experienced rising expenses, particularly in interest and depreciation.
Despite fluctuations in the operating profit margin, Capri Global has managed to maintain a healthy level of profitability, as reflected in the growth of earnings per share. The company’s low dividend payout percentage indicates a focus on reinvesting earnings for future expansion. This suggests that Capri Global is strategically positioning itself for continued growth.
FAQs
What Is the Market Value of Capri Global Capital?
The market value of Capri Global Capital (CGCL), indicated by its Market Cap, stands at ₹15,527 crore.
As of October 31, 2023, the current share price of Capri Global Capital is ₹757.
What Is the P/E Ratio of Capri Global Capital?
The P/E ratio of Capri Global Capital is 70.6, with its median P/E being 41.6.
What Is the Trend in Capri Global Capital’s Return on Equity (ROE) Over the Years?
Capri Global Capital’s Return on Equity (ROE) has shown a relatively stable trend over the years, hovering in the single-digit range. The most recent reported ROE stands at 7.46%, reflecting a moderate level of return on equity. While it hasn’t seen substantial growth, it indicates a consistent but not exceptionally high financial performance.
Also read:
Should One Invest In Capri Global Capital (CGCL)?
When thinking about investing in Capri Global Capital, it’s important to carefully assess the information provided. The company has displayed some notable strengths, including impressive growth in assets under management (AUM), improved core earnings, and an expanding branch network, all of which suggest a positive future for the company.
However, it’s crucial to address certain concerns. The stock is currently trading at a significant premium to its book value, which could raise questions about its valuation. Additionally, the low-interest coverage ratio and a relatively modest return on equity over the last three years point to financial challenges.
Furthermore, the consistently low dividend payout implies limited returns for income-oriented investors. The decline in promoter holding over the last three years also raises questions about governance and ownership.
In conclusion, whether you should invest in Capri Global Capital depends on your individual investment goals and risk tolerance. It may be a suitable option for investors seeking capital appreciation and willing to take on higher risk. However, if you’re seeking stable income, you should carefully weigh the potential returns against the dividend yield and financial stability of the company before making a decision.
What did we learn?
