CGCL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 How I’m Thinking About This

You’re asking for a full-spectrum fundamental analysis of Capri Global Capital Ltd (CGCL), a mid-cap NBFC with a diversified lending portfolio. I’m evaluating its financial strength, valuation metrics, business model, and technical indicators to determine its long-term investment potential and ideal entry point.

📊 Core Financials Breakdown

Profitability & Growth

EPS: ₹5.84 — moderate earnings base

PAT Qtr: ₹150 Cr vs ₹158 Cr — -5% QoQ, but +141% YoY — explosive annual growth

ROE: 11.0%, ROCE: 11.4% — decent, though not industry-leading

Debt-to-equity: 2.97 — typical for NBFCs, but worth monitoring

Dividend & Cash Flow

Dividend Yield: 0.11% — minimal, reinvestment-focused

Cash flows supported by strong AUM growth and diversified lending

💰 Valuation Indicators

Metric Value Interpretation

P/E Ratio 35.6 Overvalued vs industry PE of 24.0

P/B Ratio ~3.88 Premium to book value

PEG Ratio 0.97 Fair — valuation aligns with growth

Intrinsic Value ~₹175–₹185 Trading near fair value

Valuation is reasonable given the growth trajectory, though P/E is elevated.

🏦 Business Model & Competitive Edge

Industry: NBFC — credit services across MSME, housing, gold loans

Moat

Strong presence in underpenetrated Tier 2–3 markets

Rapid branch expansion (1,111+ branches)

High-growth verticals like gold loans (130% YoY growth) and MSME lending

Catalysts

AUM growth of 46% YoY

Positive institutional sentiment (FII +3.74%, DII +6.01%)

Analyst targets for 2025: ₹191.6 to ₹197.56 — upside of 3–6%

Brokerage sentiment: “Buy” recommendation based on diversified growth and branch scalability

Capri Global is positioning itself as a scalable credit platform with strong rural and semi-urban penetration.

📉 Technical & Entry Zone

Current Price: ₹186

DMA 50/200: Trading slightly above both — neutral to mildly bullish

MACD: +0.79 — positive momentum

RSI: 48.6 — neutral zone

📌 Suggested Entry Zone: ₹175–₹185

This range aligns with intrinsic value and technical support. Accumulate on dips for long-term exposure.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for exposure to MSME and gold loan growth

Buy on dips near ₹180 if bullish on NBFC expansion and rural credit demand

2026 Target Price: ₹213 based on analyst consensus

2030 Forecast: ₹290+ if AUM and profitability scale as projected

1

⭐ Fundamental Rating

4.2

1

stockpricearchive.com

Edit in a page