Capri Global Capital Ltd - Stock Investment Idea | Weekly Pick
CGCL has formed a triple bottom near ₹150 and is now building higher lows, sustaining above its 200 EMA and point of control—signaling strong buying interest. With RSI above 50 and MACD in positive territory, momentum favors further upside. Accumulate ₹175–₹185 for targets of ₹220–₹250. Stop loss: ₹149.
Expert recommendation by Mr. Arpan Shah (Head Technical Research) (NISM-201600130194)
- Current Price: ₹ 182
- Buying Price: ₹ 185-175
- Target Price: ₹ 220-250
- Stop loss: ₹ 149
- Upside: 37%
- Time Frame: 3-4 months
Stock Technical Analysis
- Stock made an all-time high at 289 in Mar24 and after making this highs stock has witnessed deep correction and reached near support level of 150
- Post this correction Stock has made triple bottom formation near 150 level and it has been making higher bottom formation since then
- Stock has been sustaining above 200 days exponential moving average levels as well as Point of control line which indicates buying interest
- Momentum indicator RSI is sustaining above 50 level on daily chart and MACD is also sustaining above 0 level which indicates upside momentum is likely to continue in the coming days
Traders can look to accumulate CGCL in ₹ 185-175 zone and expect upside targets of ₹ 220-250 in 2-3 months with stoploss below ₹ 149 (closing basis).
Know more about Capri Global Capital Ltd. – An Emerging NBFC With Diversified Retail Lending Play
Website: www.capriloans.in
Capri Global Capital is a non-deposit-taking, systemically important NBFC based in Mumbai. It offers a wide range of financial products including MSME loans, affordable housing and construction finance, gold loans, car loan distribution, and indirect lending via smaller NBFCs and MFIs.
Business Model Highlights
- Diversified Lending Portfolio: Offers secured MSME loans, housing and construction finance, gold loans, and car-loan distribution. Added gold loans in August 2022 and rapidly scaled through a growing branch network
- Co-lending Strategy: Partners with SBI and Union Bank to co-lend loans—capable of financing 25x leverage. This enhances profitability, retention, and allows cross-selling opportunities
Financial & Operational Performance
- AUM Growth: AUM ballooned from ₹10,320 crore (Mar 2023) to ₹15,653 crore (Mar 2024), driven by expansion in secured loans and gold loan verticals
- Profitability: PAT improved from ₹205 crore (FY23) to ₹279 crore (FY24). Net NPA remained stable and low (~1.1%) indicating solid asset quality
- Capital & Leverage: Raised ₹1,440 crore via rights issue in Q4 FY23. Consolidated gearing stands at a moderate 2.72× with a standalone capital adequacy of 26.6%
Investment Strengths
- Granular, Secured Loan Mix: Focus on MSME, housing & gold loans minimizes risk while enabling strong growth
- Scalable via Co-Lending: Access to bank balance sheets boosts reach and margins
- Improving Profitability & Asset Quality: Strong AUM growth, healthy ROE trends, and disciplined underwriting
Key Considerations
- Sectoral Concentration: ~80% of AUM is concentrated in five states—Maharashtra, MP, Rajasthan, Haryana, and Gujarat
- Cost Pressures: New gold loan branches increased opex and temporarily moderated profitability metrics
- Cyclicality & Regional Risk: MSME and real estate portfolios may be vulnerable during economic slowdowns.
Valuation Snapshot (As of August 2025)
- Market Cap: ~₹17,500 crore. P/E ~30x, P/B ~4.1x, P/S ~5x
- Intrinsic Value Estimate: ~₹193.8, implying a modest 6% undervaluation relative to current price (₹182)
- Momentum & Fundamentals: Strong upward earnings trend and solid fundamentals position it within the top quartile of small-caps
Why Investors Should Track CGCL?
Capri Global Capital presents a compelling NBFC play with strong AUM growth, diverse product offerings, scalable partnerships, and solid financials. Investors should watch its geographic concentration and rising costs. At current valuations, it appears fairly valued with moderate upside potential.
Disclaimer - Investments in securities market are subject to market risk, read all the related document carefully before investing.
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