Capital First Ltd. share price target and research reports

Name: Latest research reports of Capital First Ltd. authored by Geojit BNP Paribas and published by - Trendlyne research reports.
Item: Capital First Ltd.
Rating: 4
Author: Geojit BNP Paribas

Latest analyst research reports with target prices and PDF download for CAPF, BSE:532938 Capital First Ltd.

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Capital First Ltd.

02 Nov 2018

CAPITAL FIRST LIMITED

Accumulate: Capital First Ltd.

Recommendation Target

Geojit BNP Paribas

Capital First (CAPF) is a leading NBFC specialized in providing debt financing to Self-employed Entrepreneurs, MSMEs and consumers in India. CAPF has financed over 4 million customers in more than 225 locations across...

Capital First Ltd.

09 Aug 2018

CAPITAL FIRST LIMITED

Buy: Capital First Ltd.

Geojit Research

Capital First Ltd.

07 Aug 2018

EARNINGS UPDATE- CAFL-1QFY19

Sell: Capital First Ltd.

Chola Wealth Direct

Background: Capital First Ltd (erstwhile Future Capital Holdings Ltd) is a non-deposit taking NBFC with large focus on retail lending. Capital First provides loans to retail customers (in the form of secured and unsecured loans to small and medium enterprises (MSME), consumer durables loans, two-wheelers loans and housing loans) and corporate customers (loans to real estate developers) on a selective basis. AUM (Asset under Management) stood at INR 296bn as of 1QFY19 with a mix of Retail- 91%...

Capital First Ltd.

14 May 2018

EARNINGS UPDATE- CAPF- 4QFY18

Buy: Capital First Ltd.

Target

Chola Wealth Direct

Capital First Ltd.

06 Apr 2018

Capital First : INR37b PAT, 14 %+ RoE for the combined entity in 5-6 years

Buy: Capital First Ltd.

Motilal Oswal

We recently met the management of Capital First (CAFL). The proposed merger of IDFC Bank (IDFCB) with CAFL is likely to fructify by mid-FY19, creating a financial services entity with total assets of ~INR1.5t. Over the next 5-6 years, the combined entity is likely to undergo a huge transformation - from a primarily wholesale-focused bank to a retail-focused bank with meaningful CASA deposit franchise. Currently, CASA deposits at IDFCB amount to merely INR43b - 4% of total liabilities. Bulk of the CASA has come in the past four quarters (post demonetization). The management's priority post-merger will be scaling up the CASA franchise.

Capital First Ltd.

31 Jan 2018

Result Update:Capital First

Buy: Capital First Ltd.

Target

Axis Direct

CAFL reported a strong quarter, beating our estimates across parameters. PAT came in at Rs 870 mn (up 41.7% YoY; est. Rs 829 mn) marked by robust 31.8% YoY growth in AUM, 12 bps QoQ uptick in margin (calculated)

Capital First Ltd.

15 Jan 2018

Capital First : Into a different league

Buy: Capital First Ltd.

Target

Motilal Oswal

The Boards of IDFC Bank (IDFCB) and Capital First (CAFL) have approved a merger of the two entities at a 13.9:1 swap ratio. We believe this merger would have benefits for shareholders of both companies, though near term regulatory & integration challenges persist. The share swap ratio makes it attractive (~12.5% premium to CMP) for CAFL shareholders. Benefits to IDFCB shareholders will accrue more over a medium to long term perspective. On our proforma merged numbers, we expect ~20bp/200bp higher ROA/ROE for IDFCB by FY21. Without factoring in cost related synergy benefits, balance sheet realignment would drive 4-5% higher profitability for combined entity. While the merger would result in dilution of BVPS for IDFCB in the short term (INR41/44 in FY19/20E v/s INR48/51 earlier), we believe its growth and RoE profile would improve significantly post consolidation. We have a BUY rating on Capital First and revise target price to INR960 (earlier INR925) ??? 2.7x FY20 BV. We expect share price of CAFL to largely track the price of IDFCB in the ensuing quarters. We have a neutral rating on IDFCB.

Capital First Ltd.

29 Nov 2017

Capital First: Return ratios to improve with scale and mix

Buy: Capital First Ltd.

Motilal Oswal

We recently met management of Capital First (CAFL) at our Midcap Conference'. The company's growth prospects appear bullish to us. Given the strong performance in 1HFY18, coupled with better-than-expected demand in the festive season, AUM growth in FY18 should comfortably exceed management's guidance of 23-25% and could possibly be north of 30%, in our view. We expect 28% AUM growth, driven by growth of 50% in consumer durables (CD) loans and 30% in twowheeler (2W) loans. Management targets a 400-500bp improvement in RoE over three years from FY17 levels (12%). There are three key factors driving this improvement: (1) Improving...

Is Capital First Ltd. worth buying?

83 Votes:

Buy 72.29%

Sell 19.28%

Hold 8.43%