CGCL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Capri Global Capital Ltd. (CGCL) has carved out a niche in financial services, blending high growth with a focused NBFC model. While richly valued on some metrics, its accelerating profitability and rising institutional interest suggest promising momentum.

📈 Core Financial Snapshot

EPS: ₹5.80 — modest, yet improving earnings base.

ROE: 11.8% | ROCE: 11.2% — decent return metrics for an NBFC, though below top-tier peers.

PAT Qtr Growth: +39% QoQ — substantial profit acceleration to ₹178 Cr.

Debt-to-Equity: 3.62 — typical for lending businesses; manageable with strong asset quality.

Dividend Yield: 0.08% — low payout, signaling reinvestment focus.

📊 Valuation Overview

P/E: 36.5 vs Industry PE: 25.2 — premium valuation, pricing in growth and expansion.

P/B Ratio: ~3.47 — reflects market optimism beyond asset value.

PEG Ratio: 1.12 — growth-adjusted valuation appears fair, not excessive.

Intrinsic Value Estimate: ₹160–₹175 — current price slightly above fair value, may need consolidation.

🏦 Business Model & Edge

Segment: NBFC focused on MSME loans, affordable housing, and gold loans.

Strengths

Niche targeting underbanked segments.

Consistent loan book expansion with improving NIMs.

Strong traction in retail credit and tech-enabled lending processes.

Concerns

Premium valuation limits upside without consistent growth.

Low dividend yield may deter income investors.

Potential asset quality risks during economic stress cycles.

🔍 Technical Overview

RSI: 56.4 — mildly bullish zone, not overheated.

MACD: +3.70 — momentum buildup suggests continuation.

Volume is below 1-week average — signals cooling after a rally phase.

🎯 Suggested Entry Zone

₹165 – ₹175: Near intrinsic and DMA200 levels; lower-risk entry.

Bargain zone around ₹151 (52-week low) for deep-value seekers.

🧭 Long-Term Holding Guidance

Best suited for growth-focused investors with a 3–5 year horizon

Riding India's retail lending boom, especially among underbanked populations.

Rising FII/DII interest and strong earnings expansion support rerating.

Continued fintech innovation and regulatory clarity could be key unlocks.

If you’d like, I can chart how CGCL compares with peers like Poonawalla Fincorp or Muthoot Finance for a sectoral perspective. Let’s take the full view. 💡📊💼

Edit in a page