Buy Capri Global Capital Ltd For Target Rs. 250 By Choice Institutional Equities
Key Conference Call Highlights
Guidance and Targets
* AUM o FY28E: INR 550.0 Bn o FY32E: INR 1,000.0+ Bn
* AUM Mix: ~50% Gold Loans; 16–18% for MSME, Housing and Construction Finance each
* Co-lending and DA: ~20% of AUM
* CoF: To target reduction by 10–20 bps in FY27E and 10 bps in FY28E
* Profitability: RoA at ~4.00–4.50%, RoE at 16.0%–18.0% by FY28E
* To scale up its physical network by opening 700–800 branches in the next two years, a majority of which would be Gold Loan branches
* To open ~350 Gold Loan branches in FY27E
Segmental Performance
Gold Loans
* AUM crossed INR 150.0 Bn milestone (+110.9% YoY); added 89 Gold Loan branches, of which 62 were in South India and 20 in Odisha
* Branch productivity was at INR 170 Mn/branch (vs. 141 Mn/branch QoQ). Incremental Segment LTV for the portfolio stood at ~70%
MSME
* AUM grew by 17.7% YoY to INR 64.9 Bn
* Micro-LAP: INR 8,240 Mn AUM; to focus on sales productivity and operating efficiency
Housing Finance
* AUM increased by 43.2% YoY to INR 74.5 Bn
* The management is optimistic on Affordable Housing demand led by rising income level and lower interest rates
Construction Finance
* AUM expanded by 38.1% YoY to INR 57.1 Bn; 282 active projects; average sanction stood at INR 480 Mn, average outstanding INR 200 Mn. It maintained three dedicated branches at Ahmedabad, Bengaluru and Hyderabad
Asset Quality
* Provision Coverage Ratio stood at 41.2% as of Q4FY26 vs. 43.6% as of Q3FY26
* Credit cost for Q4FY26 stood at ~0.8%, mainly driven by provision for stage 1 assets, led by increase in higher disbursements
* Strong collection practices maintained across portfolios
Capital
* Capital adequacy: CGCL 25.8%, Housing Finance subsidiary 27.7%
Technology & ESG
* The company launched an upgraded fully digital end-to-end platform, Capri Care, in Q3FY26, enabling real-time policy issuance for insurance distribution
* Capri Global has built and deployed its own specialised small language model, currently used by operations for collections communication
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SEBI Registration no.: INZ 000160131
