Sell

Capri Global Capital (Capri), in its analyst day on Sep 15, ’23, reiterated its vision to grow its portfolio to INR 30bn in the next five years, while continuing to pursue ‘granularisation’ strategy. New products, i.e. gold loans, car loan distribution and co- lending are likely to be its primary growth drivers, coupled with >30% growth in existing product segments.

Expansion snags due to plant relocation to hamper medium-term growth as utilisation likely breaches 80% in FY25

We recommend a SELL rating on the stock and assign a 20 x P/E multiple to its FY25E earnings of Rs 63.7/share to arrive at a TP of Rs 1,300/share, implying an downside of 11.5% from the CMP.

Borrowing limit raised to Rs 70bn at AGM but resolution to hike inter-corporate transaction limit 4x to Rs 100bn rejected