NBFC stock gains more than 7% after company reports 55% increase in net profit and revenue

Shares of Capri Global a Non-Banking Financial Company (NBFC) appreciated to the tune of 7.34% on Tuesday’s early trades to reach an intraday high of ₹ 725.00 apiece on the National Stock Exchange (NSE) following its strong results. At 12:11 Pm, its shares were trading 5.16% higher at ₹ 710.25 apiece. 

On a consolidated basis, the company reported a 55.37% increase in its net profit to ₹ 64.90 crores in the January to March quarter (Q4FY23), as compared to ₹ 41.77 crores reported in the corresponding quarter last year (Q4FY22). Its revenue came in at ₹ 453.96 crores in Q4FY23, up 55.78% as compared to ₹ 291.41 crores in Q4FY22. 

For the entire year (FY23), the company reported a net profit of ₹ 204.64 crores as compared to ₹ 205.04 crores in the previous financial year (FY22). It posted a revenue of ₹ 1,463.35 crores in FY23, up 49.27% against ₹ 980.31 crores in FY22. 

Capri Global’s non-interest income has become an important contributor to the Company’s net income. The share of non-interest income in net income was 36.3%. Moreover, fees from the car loan origination business and co-lending income were the two main drivers of this income. Both these businesses were launched about two years ago and have scaled up fast. 

The company’s gold loan business continued to scale up rapidly after the launch in Aug ’22 through 108 branches across 5 states and UTs. Its network expanded to 562 exclusive branches in Q4FY23 from 182 in Q2FY23 and 449 in Q3FY23. 

Capri Global Capital Ltd is a diversified Non-Banking Financial Company (NBFC) with a presence across different segments like MSME, construction finance, affordable housing and indirect retail lending segments. 

With a market capitalization of ₹ 13924 Crores, Capri Global is a small-cap stock. It has a return on equity of 11.27% and a dividend yield of 0.07%. The company’s shares were trading at a price-to-earnings ratio (P/E) of 70.06, which is significantly higher than the industry P/E of 23.26, indicating that it might be overvalued as compared to its peers. 

The company’s promoters hold a 69.91% stake in the company, followed by retail investors with 16.26%, domestic institutions with 12.06%, mutual funds with 1.56% and foreign institutions with 0.21%. 

Written by Simran Bafna