CGCL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | CGCL | Market Cap | 16,018 Cr. | Current Price | 166 ₹ | High / Low | 232 ₹ |
| Stock P/E | 21.6 | Book Value | 65.3 ₹ | Dividend Yield | 0.12 % | ROCE | 11.4 % |
| ROE | 11.0 % | Face Value | 1.00 ₹ | DMA 50 | 181 ₹ | DMA 200 | 184 ₹ |
| Chg in FII Hold | -0.33 % | Chg in DII Hold | -0.18 % | PAT Qtr | 221 Cr. | PAT Prev Qtr | 212 Cr. |
| RSI | 35.8 | MACD | -3.29 | Volume | 7,24,235 | Avg Vol 1Wk | 20,63,696 |
| Low price | 151 ₹ | High price | 232 ₹ | PEG Ratio | 0.59 | Debt to equity | 1.99 |
| 52w Index | 19.6 % | Qtr Profit Var | 104 % | EPS | 7.97 ₹ | Industry PE | 18.9 |
📊 Financials: Capri Global Capital Ltd. (CGCL) has shown steady profitability with PAT rising to 221 Cr from 212 Cr. ROE at 11% and ROCE at 11.4% indicate moderate efficiency. Debt-to-equity ratio of 1.99 reflects leveraged operations, though manageable for an NBFC. EPS of 7.97 ₹ supports earnings visibility, while quarterly profit variation (104%) highlights strong year-on-year growth momentum.
💹 Valuation: Current P/E of 21.6 is slightly above industry average (18.9), suggesting fair-to-expensive valuation. P/B ratio ~2.54 (Price 166 ₹ / Book Value 65.3 ₹) is on the higher side. PEG ratio of 0.59 indicates reasonable valuation relative to growth. Dividend yield of 0.12% is negligible, offering limited income support.
🏢 Business Model: CGCL operates as a diversified NBFC with focus on MSME loans, affordable housing finance, and vehicle loans. Its competitive advantage lies in niche lending segments and strong presence in underserved markets. Growth is driven by expanding loan book and financial inclusion initiatives.
📈 Entry Zone: Attractive accumulation zone between 155–162 ₹, near support levels and below DMA200 (184 ₹). RSI at 35.8 indicates oversold conditions, while MACD (-3.29) suggests bearish momentum. Long-term investors can accumulate gradually at lower levels.
🔒 Holding Guidance: Fundamentally stable with growth potential, but valuations are slightly stretched. Suitable for long-term holding if accumulated near support zones. Monitor leverage and institutional sentiment closely.
Positive
- Strong year-on-year profit growth (104%).
- Moderate ROE (11%) and ROCE (11.4%) show operational stability.
- PEG ratio of 0.59 indicates fair growth-adjusted valuation.
- Diversified lending portfolio across MSME, housing, and vehicle finance.
Limitation
- P/E (21.6) slightly above industry average (18.9).
- P/B ratio of 2.54 indicates expensive valuation relative to book value.
- Dividend yield of 0.12% offers negligible income support.
- Institutional sentiment weak with FII (-0.33%) and DII (-0.18%) reductions.
Company Negative News
- No major negative news reported, but reduced institutional holdings reflect cautious sentiment.
Company Positive News
- Strong profit growth and expanding loan book.
- Focus on underserved markets enhances growth potential.
- Stable quarterly earnings despite sector challenges.
Industry
- NBFC sector benefits from rising credit demand in MSME and housing finance.
- Industry P/E at 18.9 suggests moderate optimism.
- Government initiatives for financial inclusion support long-term growth.
Conclusion
✅ Capri Global Capital Ltd. is a stable NBFC with strong profit growth and niche market presence. Valuations are slightly expensive, but oversold technicals provide accumulation opportunities near 155–162 ₹. Suitable for long-term holding with cautious monitoring of leverage and institutional sentiment.
Would you like me to also compare CGCL’s valuation multiples against leading NBFC peers like Bajaj Finance or Muthoot Finance to see relative attractiveness?