CGCL - Investment Analysis

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

📊 Investment Rating: 4.0

Capri Global Capital Ltd (CGCL) shows strong growth momentum and institutional interest, but its high leverage and moderate capital efficiency warrant a balanced long-term view. Here's a full breakdown

✅ Strengths for Long-Term Investment

Solid Growth Metrics

PAT Qtr: ₹178 Cr vs ₹128 Cr — 115% jump

EPS: ₹5.80 — improving earnings base

PEG Ratio: 1.12 — fair valuation relative to growth

Institutional Confidence

FII holding up 3.74%, DII up 6.01% — strong sentiment

Technical Positioning

Price above 50 DMA (₹173) and 200 DMA (₹178) — bullish undertone

MACD: 3.70 — positive crossover

Sector Tailwinds

NBFCs with diversified lending (MSME, housing, gold loans) are well-positioned for India’s credit expansion

⚠️ Risks & Valuation Concerns

High Leverage

Debt-to-equity: 3.62 — elevated, though typical for NBFCs

Moderate Efficiency

ROCE: 11.2%, ROE: 11.8% — decent but not exceptional

Low Dividend Yield: 0.08% — not ideal for income investors

Valuation

P/E: 36.5 vs Industry PE of 25.2 — slightly expensive

📈 Ideal Entry Price Zone

To improve margin of safety, consider accumulating in the ₹165–₹175 range

Near 200 DMA and historical support levels

RSI at 56.4 — neutral momentum, wait for dips or breakout confirmation

🧭 Exit Strategy / Holding Period

If you're already holding the stock

Holding Period: 3–5 years to benefit from loan book expansion and fee income growth

Exit Strategy

Partial Exit near ₹225–₹232 (52-week high) if valuation stretches without earnings catch-up

Hold if ROE improves above 13% and PEG remains below 1.2

Monitor debt levels and PAT growth — any slowdown or asset quality concerns may warrant trimming

Would you like a peer comparison with other NBFCs like Muthoot Finance or Cholamandalam to benchmark CGCL’s potential?

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