Capri Global Capital Ltd
Company Name: Capri Global (BSE code: 531595)
Industry: Finance (NBFC)
Investment
Horizon: At
least 2 Years
Allocation: Allocate not more than 5% of your
portfolio, at CMP of 75 and can try to add on dips
(A little highly priced at 22 P/E,
investors can take the growth perspectives for investing in this company)
About the
Company:
Capri Global Capital Ltd is
incorporated in 1997 as Non-Banking Finance Company (NON DEPOSIT TAKING)
Its business verticals include SME
loans and Construction finance viz... funding to Real estate developers and
provide multiple solutions in the structured credit space such as Project
Funding, Acquisition Financing, Structured Debt Financing, receivable
discounting, Inventory funding and advisory
It has a subsidiary company-Capri
Global Housing Private Limited will operate shortly in Housing finance
History:
Debt Advisory – Till 2012, Rs.50,000
Cr credit transactions
Qualified Institutional Placement –
Raising Rs.445 Cr attracted investments from Global investment banking giants
Collaborated with Capri Capital
Partners, LLC – a Chicago based investment Management Company
Industry:
We all know that our government has
made a step towards Make in India initiative, with a vision that India should
be a hub for manufacturing the products and providing employment Opportunities. So MSME will be the contributor
to the nation’s growth and plays an important role in providing employment
opportunities and livelihood. (Grant Thornton has released an article VISION 2020)
Highlights Extracted: MSME sector can
contribute as much as 40% to GDP of India in the years to come (By 2020, Indian
Nominal GDP is expected at 205 trillion rupees)
Even Global Analysts believe that NBFC
sector can have a promising growth of 30% which is very interesting
As per Morgan Stanley report, Indian
e-commerce industry to grow at a faster pace to reach 120 billion dollar
revenue by 2020
Constraints:
Funding for their business would be
a constraint for upcoming start-ups, MSMEs
(This is a huge potential for the
company)
Some regulatory issues and
compliances make a trouble for the ease of business
Pros:
- The Company has a good past record which is mentioned in History
- Promoter holding is very good at 74% for the Quarter ending June 2017
- Foreign portfolio investors has 9% holding (including Morgan Stanley Mauritius Company Limited holding 1.57% stake)
- Entering into Housing Finance Industry
- NBFC sector can have a promising growth of 30% which is very interesting
- Total Loans disbursed so far Rs.692 Cr in FY 16
- Capital Adequacy ratio is at 80% (Minimum as per RBI is 15%)
- Credit Rating by CARE – A+
- Increased number of branches from 9 to 23 in FY 16 and Loan book grew by 16% from previous year
- Book Value is Rs.65 (Worth Investing)
- Gross NPA is 0.88% and Net NPA is 0.75%
- Amount spent on CSR – Rs.242 Lacs in FY16
Cons:
- Return on Equity for the past three years is at 6%
- Due to the earlier company, the company is having huge reserves due to which the return on equity is low
- (The Company is formerly named as Money matter Financial Services changed its business from financial services to Lending- Allegations of Scam/Fraud)
- Formerly it accepted deposits from public but now it is into Lending business- NBFC.
- Rajesh Sharma who is a part of that scam is still working as Non-executive director but did not hold any shares
- Trading at a P/E of 22
Financial
Highlights:
- Revenues are grown at 13% for the past three years
- More than 80% of their business is Priority sector lending and expanding business to pan India
- Debt to Equity is at 0.64 (Other peers in the same industry has 4 to 5 – Remember it is NBFC)
- It has an Equity base of Rs.17 Cr
- The Company has paid dividend of Rs.1.5 per equity share for the FY 16
- The company has long term borrowings worth Rs.400 Cr (As per FY 16 Annual report) from different banks- Bank of Maharashtra, Andhra Bank, Bank of India and Vijaya Bank at a Floating rate of 11.20%. The product portfolio of the company includes SME Loans – Interest rate varies from 12% to 20% (Margin of 0% to 8% or 800 basis points)
Narration
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
Sales
|
571.51
|
1,852.63
|
158.26
|
189.55
|
186.39
|
221.00
|
Expenses
|
511.57
|
1,756.68
|
39.44
|
48.00
|
119.26
|
94.32
|
Op Profit
|
59.94
|
95.95
|
118.82
|
141.55
|
67.13
|
126.68
|
OPM
|
10.49
|
5.18
|
75.08
|
74.68
|
36.02
|
57.32
|
Net profit
|
40.27
|
74.27
|
81.76
|
85.18
|
41.20
|
57.79
|
EPS
|
2.31
|
4.25
|
4.67
|
4.86
|
2.35
|
3.30
|
PE
|
7.37
|
5.28
|
5.45
|
6.81
|
11.37
|
22.80
|
Price
|
17.01
|
22.47
|
25.49
|
33.11
|
26.74
|
75.25
|
Management:
- Mr Quintin E. Primo III - Non-executive Chairman
- Mr Sunil Kapoor - Executive Director
- Mr Beni Prasad Rauka - Independent
- Ms. Bhagyam Ramani - Independent
- Mr. Mukesh Kacker - Independent
- Mr. Bhagwati Prasad - Independent
- Mr. T. R. Bajalia - Independent
- Mr. Rajesh Sharma - Promoter
Rating:
- Technical Rating: 75
- A breakout happened at Rs.77 which is a resistance from past 6 months (when it had made a life time high) with a tremendous volume
- It has crossed 50 day, 100 day, 200 day Exponential Moving averages
- Fundamental Rating: 67
- Overall rating: 71
Valuations:
With the investment horizon given,
considering all the inputs of estimates the valuations are at Rs.135 for one year
Valuations are made at 20X projected
FY 18 EPS
(The valuations are calculated on
the basis of financial inputs/estimates but investors are required to invest
based on the business potential and business risks too)
Note: Some of the information
mentioned here is obtained through company website, annual reports and BSE
official website
Good Research. Thanks for sharing information.
ReplyDeleteTanla Solutions Ltd
Tata Steel
long-term funds
LIC shareholdings
All thanks to Mr Anderson for helping with my profits and making my fifth withdrawal possible. I'm here to share an amazing life changing opportunity with you. its called Bitcoin / Forex trading options. it is a highly lucrative business which can earn you as much as $2,570 in a week from an initial investment of just $200. I am living proof of this great business opportunity. If anyone is interested in trading on bitcoin or any cryptocurrency and want a successful trade without losing notify Mr Anderson now.Whatsapp: (+447883246472 )
ReplyDeleteEmail: tdameritrade077@gmail.com