Shares of this small-cap NBFC stock surged over 17 percent on Wednesday, following the company’s significant 50 percent YoY rise in net profit and robust revenue growth in its latest quarterly results.
Share Price Movement
During Wednesday’s trading session, Capri Global Capital Ltd‘s share price increased by 17.07 percent, reaching an intra-day high of Rs.216.00 per share, up from the previous close of Rs.184.49 apiece. The shares have retreated since then and are trading at Rs.208.86 per share.
What Happened
The bullish movement in Capri Global Capital Ltd’s stock price reflects its growth in revenue and net profit for the recent quarter. In its filing for Q2 FY25, the company reported a 35 percent YoY increase in revenue, reaching Rs.752 crore, up from Rs.557 crore in Q2 FY24, and a 5 percent QoQ increase from Rs.718 crore in Q1 FY25.
Net profit rose significantly by 50 percent YoY to Rs.97 crore, compared to Rs.65 crore in Q2 FY24, and 28 percent from Rs.76 crore in Q1 FY25.
Return ratios show a ROCE of 9.50 percent and an ROE of 7.54 percent, supported by a strong current ratio of 2.10 and a high debt-to-equity ratio of 3.19.
Asset Under Management
As of June 2024, Capri Global Capital Ltd’s AUM reached Rs.174,579 million, marking a 56 percent YoY increase, driven by a 40 percent rise in home loans and a 238 percent surge in gold loans.
Disbursements hit Rs.56,197 million, up 109 percent YoY. With retail AUM comprising over 80 percent of the portfolio, the company is on track to reach its Rs.300,000 million AUM target by FY27. Co-lending AUM also rose to 16.4 percent in Q1 FY25, from 11.7 percent in Q4 FY24 and 6.2 percent in Q1 FY24.
Future Outlook
The company aims to reach an AUM of Rs.300,000 million by FY27. Growth in MSME and housing finance is expected to recover starting Q2 FY25. Additionally, around 50 gold loan branches are planned for the coming year, emphasizing steady expansion.
Management Guidance
The management is optimistic about reaching a mid-teen ROE, targeting 10.5 percent to 11 percent for FY25 and aiming for 15 percent by FY27. They expect new technology and enhanced operational efficiency to be key drivers of future growth.
Company Profile
Capri Global Capital Ltd (CGCL) is a diversified Non-Banking Financial Company (NBFC) based in Mumbai, India. Established in 1994, the company primarily focuses on providing financial services to Micro, Small, and Medium Enterprises (MSMEs), as well as offering loans for affordable housing, construction finance, and gold loans.
It operates a robust distribution network with over 736 branches across 15 states and Union Territories, catering particularly to the unbanked and underserved populations in North and West India
Written by – Siddesh S Raskar
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