Target: ₹245
CMP: ₹189.10
We begin coverage on Capri Global Capital Ltd (CGCL) with a Buy recommendation and a target price of ₹245, valuing the stock at 2.3 times its FY28 estimated price-to-book ratio. Founded in 2011, CGCL is a developing diversified non-banking financial company (NBFC) with a strong focus on retail, with approximately 80% of its portfolio devoted to retail sectors, and it operates a fully secured lending franchise.
Following the COVID-19 pandemic, CGCL took advantage of rising gold prices, entering the Gold Loan (GL) sector in 2022. This was further expanded with the introduction of Micro-LAP in 2025, a segment that is currently experiencing significant traction within the industry. The company’s existing portfolio comprises Micro, Small, and Medium Enterprises (MSME) at 21%, Gold Loans (GL) at 38%, Home Finance (HF) at 22%, and Corporate Finance (CF) at 18%.
In addition to its lending operations, CGCL has established a car loan origination vertical, which generates stable non-interest income through a pure sourcing business model. Since commencing co-lending activities in 2021, approximately 20% of its assets under management (AUM) are now in co-lending or direct assignment (DA) structures, which have contributed meaningfully to income growth over the past four years. CGCL’s strategy to diversify its income sources and mitigate against net interest margin (NIM) pressure sets it apart from competitors.
The company maintains a strong asset quality, with a gross stage 3 (GS3) and net stage 3 (NS3) ratio of 1.3% and 0.7% respectively as of the second quarter of FY26, supported by its fully secured lending model.
CGCL is expected to achieve a compound annual growth rate (CAGR) of approximately 35% in AUM from FY25 to FY27, bolstered by operating leverage and manageable credit costs estimated at around 0.5% post-FY26. This growth is projected to drive a profit after tax (PAT) CAGR of about 62% during FY25 to FY27, reflecting an average return on assets (RoA) and return on equity (RoE) of 3.6% and 15.6%, respectively, over FY26 to FY27.
Published on December 2, 2025
