While there have been past run-ins and there is a lack of institutional holding, we're not overly skeptical, and we believe that CGCL has business potential. However, current valuations (~2.5x trailing P/ABVs) are rich. Capri Global Capital (CGCL) is an ostensibly picture perfect NBFC, present across under-penetrated, fast growing and high yielding segments. With an AUM of ~Rs 40bn (45% CAGR over FY 15-19), the co lends to MSMEs (~50% of AUM), small-mid-sized developers (CF, ~27%), home buyers (HF, ~21% of AUM) and other NBFCs (IRL). At present, its operations span 85 branches across 8 states. While reported stress has been trending upwards, current levels are not alarming (GS-III at ~2.3%).