Capri Global Stock Volatility: From ₹231 to ₹166.5 – What Investors Need to Know
Business and Industry Overview:
Capri Global Capital Ltd (CGCL) is a financial company in India that gives loans to people and businesses. Many people cannot get loans from banks, so CGCL helps them. The company is listed on two big stock markets, BSE and NSE. It is also part of the NIFTY Small Cap 250 Index. CGCL offers different types of loans. It gives business loans to small and medium companies (MSME loans). It provides home loans to families with lower and middle incomes (affordable housing finance). People can also take gold loans by keeping their gold as security. The company also gives construction loans for real estate projects. CGCL helps people get car loans by working with six big banks. The company has over 1000 branches in 12 states and union territories in India. Most of its branches are in northern and western India. CGCL uses technology and data to check loan applications quickly and safely. This makes the process easy for customers. The company has a strong financial rating. It has a long-term rating of AA from Infomerics and Acuite. It has a short-term rating of A1+ from Crisil. It’s housing loan company, Capri Global Housing Finance Ltd (CGHFL), also has an AA rating.
Non-Banking Financial Companies (NBFCs) provide loans and other financial services. They help people and businesses who cannot get loans from banks. Many small business owners and self-employed people depend on them. Farmers and shopkeepers also take loans from NBFCs. People in villages and small towns use their services the most. NBFCs give loans for homes, cars, and personal needs. They also help fund big projects. These include roads, buildings, and other infrastructure. Many industries like transport, housing, and consumer goods benefit from NBFCs. They provide money for businesses to grow. NBFCs approve loans faster than banks. Their process is simple and quick. They do not have strict rules like banks. This makes it easier for people to get loans. Many NBFCs use digital platforms. People can apply for loans online. They can check their loan status and make payments easily. This is helpful for young people who prefer online services. The Indian government supports NBFCs. It provides funds to help them grow. It also offers loan guarantees. This allows NBFCs to offer loans at better rates. More people can get financial help because of this. NBFCs also face challenges. They do not have low-cost deposits like banks. They must borrow money from banks or other sources. This increases their costs. The Reserve Bank of India (RBI) and other regulators have strict rules. These rules make operations difficult. NBFCs also face competition from new digital loan companies. Despite these challenges, NBFCs continue to grow. Their total assets reached ₹27 lakh crore ($330 billion) in 2022. More people are choosing NBFCs for loans. With technology and government support, they will continue to expand. They will play a big role in India’s economy.
Capri Global Capital Limited (CGCL) is a growing financial company that provides loans to people and businesses that may not get help from banks. It focuses on MSME loans, affordable housing finance, gold loans, and construction finance. These loan categories help small business owners, home buyers, and individuals who need short-term funds. CGCL also works as a corporate distributor for car loans from six major banks, which increases its revenue sources. The company has a wide network of over 1,000 branches across 12 states, mostly in northern and western India. This strong presence helps CGCL reach more customers, especially in areas where banks are not easily available. The company uses technology and data analytics to speed up loan approvals and reduce risks. This makes the loan process quick and simple for customers. CGCL has strong financial ratings, which show its stability and trustworthiness. It has a long-term credit rating of AA by Infomerics & Acuite and a short-term rating of A1+ by CRISIL. These high ratings help the company raise funds at lower interest rates. CGCL has also won several awards, including “Best BFSI Brand 2021” by The Economic Times. It has been recognized as a Great Place to Work for 2024-25 for the third year in a row. Despite its strengths, CGCL faces tough competition from large NBFCs like Bajaj Finance, Mahindra Finance, and LIC Housing Finance. These companies have bigger market shares and stronger brand value. Another challenge is that NBFCs do not have low-cost deposits like banks. They depend on borrowing money from banks or other sources, which can increase costs. Additionally, strict government regulations can affect their lending policies. Even with these challenges, CGCL continues to grow. Its focus on MSMEs, affordable housing, and digital services gives it a strong position in the market. If the company expands its services and improves brand awareness, it can compete with the top NBFCs in India.
Latest Stock News:
Capri Global Capital Limited has sent a notice to the stock exchanges (BSE and NSE). The company is closing its trading window from April 1, 2025. This means certain people cannot buy or sell the company’s shares for some time. This rule applies to directors, promoters, employees, and their close family members. It is done to stop unfair trading by people who may have secret company information. The trading window will stay closed until 48 hours after the company announces its financial results for the quarter ending March 31, 2025. This follows SEBI rules to make stock trading fair for everyone. The notice is signed by Yashesh Bhatt, the Company Secretary & Compliance Officer. He makes sure the company follows all stock market rules. Capri Loans Car Platform Private Limited (CLCPPL), a part of Capri Global Capital Limited, has teamed up with the Confederation of Indian Industry (CII). Their goal is to help young people learn new skills and find better jobs. This partnership will train young professionals in skills that are useful for real jobs. Many students finish their education but struggle to find work because they lack practical knowledge. This program will bridge that gap by providing training that companies need. The company shared this news in a press release and informed the stock exchanges to keep this record.
Capri Global Capital Ltd’s stock price dropped a lot on March 27, 2025. The stock fell by 14.63% to ₹166.65 in the afternoon. Earlier in the day, it went up by 13%, but later fell 28% from its highest point. By the end of the day, it was the biggest loser in the Nifty 500 index. The stock closed at ₹166.5, much lower than the day’s high of ₹231.
A huge number of shares were bought and sold. On March 27, over 12 crore shares were traded. The day before, 4.67 crore shares were traded when the stock jumped 16%. Normally, only 1–3 lakh shares are traded in a day. This sudden increase in trading made the stock very unstable. The company does not have many big investors. By December 31, 2024, Quant Mutual Fund owned only 1.27% of Capri Global.
Capri Global is expanding its business. In December 2023, it got permission from IRDAI to sell life, general, and health insurance. The company is using new technology like artificial intelligence and blockchain to make services better. After this news, the stock went up by 13% and reached ₹924.2 per share on January 16, 2025.
The company’s financial performance has been mixed. In Q3 FY2025, its profit fell by 34.93% compared to last year. It made ₹128.08 crore profit, and its revenue dropped by 50.5% to ₹775.6 crore. But when compared to the previous quarter, revenue grew by 10.88%, and profit increased by 32.07%. This shows that the company is slowly recovering.
Capri Global’s stock has been very unstable. Many people bought and sold shares quickly, making the price go up and down. The company’s new insurance business and technology use may help it grow in the future.
Potentials:
Capri Global Capital Ltd wants to grow and help more people. It plans to open more branches in different cities. This will make it easier for people to get loans. The company gives loans for small businesses, homes, gold, and construction. It wants to increase these services so more people can get financial support. It is also working to make loan approvals faster and simpler. Capri Global can now sell insurance too. It will offer life, health, and general insurance. This means people can get loans and insurance in one place. The company is using new technology like AI and data analytics. This will help in quick loan approvals and better customer service. It is also building online services so people can apply for loans from their phones or computers. To grow, the company needs more funds and is looking for ways to raise money. It also wants to support green projects by giving loans to businesses that are good for the environment. Capri Global’s goal is to grow fast, provide better services, and help more people. It wants to support small businesses and make banking easier for everyone.
Analyst Insights:
- Market capitalisation: ₹ 13,594 Cr.
- Current Price: ₹ 165
- 52-Week High/Low: ₹ 252 / 151
- Stock P/E: 35.5
- Dividend Yield: 0.09%
- Return on Capital Employed (ROCE): 9.50%
Capri Global Capital Ltd has been growing rapidly. Its revenue has increased by 30% every year over the last 10 years. In the last 3 years, revenue grew by 46%. In the December 2023 quarter, the company’s revenue grew by 35.57%, reaching ₹588.56 crore. This is up from ₹434.14 crore last year. The company also saw a rise in its net profit. The net profit increased by 88.41%, from ₹47.83 crore to ₹90.20 crore.
Capri Global is now expanding into new areas. It is focusing on small business loans, affordable home loans, and gold loans. These types of loans are in high demand in India. The company has formed partnerships with big banks like State Bank of India (SBI), Union Bank of India, and Punjab National Bank (PNB). This helps Capri Global grow faster without needing too many branches.
However, there are some concerns. Capri Global’s return on equity (RoE) is lower than some competitors. Its RoE is 9.97%, but companies like Bajaj Finance have an RoE above 20%. This means Capri Global is not making as much profit from its equity as other companies. Also, the price-to-earnings (P/E) ratio is 45, which is high. This suggests that the stock may be expensive compared to its earnings.
Another issue is the company’s debt. Capri Global has borrowed more money. In 2023, its debt was ₹7,511 crore, and it increased to ₹10,407 crore in 2024. The higher debt means the company has to pay more in interest. Additionally, the promoters (owners) of the company have reduced their stake. In December 2023, the promoters held 49.27%, which was lower than 50.31% in September 2023. This could be a sign that the promoters are not fully confident about the stock.
In summary, Capri Global is growing quickly and expanding into profitable areas. However, the stock is expensive compared to its earnings, and the company has increased debt. The low return on equity (RoE) and the reduction in the promoter’s stake are concerns. These factors make the stock risky. It may do well in the short term, but long-term investors should be cautious. They should wait and see if the company can maintain its growth and improve its profits.