Capri Global Capital zooms 27% in 2 days on heavy volumes, positive outlook

Till 11:17 AM, a combined 32.69 million shares, representing 4 per cent of the total equity, of Capri Global have changed hands on the NSE and BSE

Shares of Capri Global Capital (Capri Loans) have moved higher by 9 per cent to ₹212.55 on the BSE in Thursday’s intra-day trade amid heavy volumes. In the past two days, the market price of the non-banking finance company (NBFC) has zoomed 26 per cent on a positive outlook. The stock is trading at its highest level of calendar year 2025. It had hit a 52-week high of ₹251.90 on April 15, 2024.

 

The average trading volumes on the counter jumped over eight fold. Till 11:17 AM, a combined 32.69 million shares, representing 4 per cent of total equity, of Capri Global have changed hands on the NSE and BSE.

 

Capri Loans operates in high-growth segments such as MSME Loans, Gold Loans, Construction Finance and offers Affordable Housing Loans through its 100 per cent subsidiary Capri Global Housing Finance Limited (CGHFL). The Company also originates Car Loan products in partnership with leading banks and financial institutions and has corporate agency license for distribution of Life, General and Health insurance products.

 

Capri Loans’ outlook continues to be “Positive” on the back of expectations that the company will achieve significant growth in overall AUM, specifically in the gold loan segment backed by strong capitalisation levels, increased branch network and co-lending tie-ups, which are expected to result in improved profitability while maintaining stable asset quality.

 

On a consolidated basis, Capri Loans’ AUM witnessed a year-on-year (YoY) growth of 55 per cent in the first nine months (April to December) of the financial year 2024-25 (9MFY25) and stood at ₹20,662.90 crore (₹15,652.94 crore in FY24 and ₹10,319.97 crore in FY23). Consolidated AUM majorly comprises of gold loans (34.35 per cent), MSME loans (23.83 per cent), Home loans (22.48 per cent) and construction finance (18.10 per cent) as on December 31, 2024.

 

On the back of which the total income and profit after tax on a consolidated basis increased to ₹2,292.68 crore and ₹300.79 crore respectively. The company's non-interest income for 9MFY25 increased by 20 per cent YoY supported by growth in co-lending fee income and insurance distribution fee income. The company said it continues to focus on non-interest income with its share in total income at 25.1 per cent in 9MFY25.

 

With steady growth in fee income and improvement in spreads, the management sees further upside to the company’s profitability. The management remains confident of achieving ₹30,000 crore AUM by FY27 and 15 per cent plus RoE over the medium-term.

 

Meanwhile, on a standalone basis, Capri Loans’ asset quality has improved with GNPA and NNPA reducing to 1.67 per cent and 1.02 per cent, respectively, for 9MFY25 (2.16 per cent and 1.18 per cent respectively for FY24). The improvement in asset quality of the company is mainly on account of improved collection efficiency leading to reduction in fresh slippages during the period.

 

Also, the collection efficiency remains comfortable at ~98 per cent for the last 12 months ending December 2024. Going forward, the ability of the company to control incremental slippages and maintain healthy asset quality in the near-to-medium term will remain a key rating monitorable, said Infomerics Valuation and Rating Limited (Infomerics) in rating rationale.