Capri Global Capital Ltd Valuation Shifts Signal Changing Market Sentiment

Valuation Metrics: A Closer Look

As of early February 2026, Capri Global’s P/E ratio stands at 19.64, a figure that positions it favourably within the NBFC universe. This multiple is significantly lower than several peers, including Poonawalla Finance and Go Digit General Insurance, which trade at P/E ratios exceeding 50 and even 100 in some cases. The company’s P/BV ratio of 2.48 further underscores its relative valuation appeal, especially when contrasted with the sector’s more expensive constituents.

Other valuation multiples such as EV to EBIT (11.68) and EV to EBITDA (11.23) reinforce Capri Global’s moderate valuation stance. These metrics suggest that the company is priced with a reasonable premium relative to its earnings and cash flow generation capabilities, reflecting a balance between growth prospects and risk factors inherent in the NBFC sector.

Comparative Peer Analysis

When benchmarked against its peers, Capri Global’s valuation profile emerges as distinctly attractive. For instance, Poonawalla Finance, a heavyweight in the NBFC space, is currently rated as very expensive with a P/E ratio north of 100 and an EV to EBITDA multiple of 24.25. Similarly, Go Digit General Insurance and Star Health Insurance trade at elevated multiples, signalling market expectations of robust growth but also heightened risk premiums.

In contrast, Capri Global’s PEG ratio of 0.22 indicates undervaluation relative to its earnings growth potential, a stark contrast to peers like Nuvama Wealth and Anand Rathi Wealth, whose PEG ratios exceed 2.0. This low PEG ratio suggests that Capri Global’s stock price has not fully priced in its growth trajectory, offering a potential margin of safety for investors.

Financial Performance and Quality Metrics

Capri Global’s return on capital employed (ROCE) and return on equity (ROE) stand at 11.27% and 10.74% respectively, reflecting a stable operational performance in a challenging credit environment. These returns, while modest, are consistent with the company’s valuation grade of ‘Hold’ and a Mojo Score of 54.0, which was downgraded from ‘Buy’ on 19 January 2026. The downgrade reflects a cautious stance amid sector headwinds but does not diminish the company’s fundamental strengths.

The company’s dividend yield remains low at 0.12%, indicating a focus on reinvestment and growth rather than immediate shareholder returns. This aligns with the broader NBFC sector trend, where capital preservation and asset quality remain paramount concerns for investors.

Price Movement and Market Capitalisation

Trading at ₹172.30 as of 9 February 2026, Capri Global’s stock price has shown resilience despite broader market pressures. The stock’s 52-week high of ₹231.70 and low of ₹150.60 illustrate a wide trading range, with recent gains of 1.38% on the day signalling renewed investor interest. The company’s market capitalisation grade is rated 3, indicating a mid-tier valuation relative to its size and liquidity.

However, short-term returns have lagged the benchmark Sensex index. Over the past month, Capri Global’s stock declined by 8.28%, compared to a 1.74% dip in the Sensex. Year-to-date, the stock is down 5.74%, while the Sensex has fallen 1.92%. Over longer horizons, Capri Global has outperformed significantly, delivering a 5-year return of 99.59% versus the Sensex’s 64.75%, and an extraordinary 10-year return of 2,067.22% compared to the Sensex’s 239.52%.

Valuation Grade Shift: Implications for Investors

The recent shift in Capri Global’s valuation grade from ‘very attractive’ to ‘attractive’ reflects a nuanced market reassessment. While the company remains competitively priced relative to peers, the upgrade in valuation grade signals that some premium has been priced in, likely due to improving asset quality and steady earnings growth. Investors should note that this shift does not imply overvaluation but rather a recalibration consistent with evolving fundamentals and sector dynamics.

Given the company’s PEG ratio of 0.22 and moderate P/E multiple, Capri Global continues to offer a compelling risk-reward profile for investors seeking exposure to the NBFC sector without the excessive premiums seen in some peers. The company’s stable ROCE and ROE metrics further support a cautious but optimistic outlook.

Sector Context and Outlook

The NBFC sector continues to navigate a complex landscape marked by regulatory scrutiny, credit quality concerns, and macroeconomic uncertainties. Within this environment, Capri Global’s valuation attractiveness is bolstered by its prudent capital management and consistent earnings delivery. While some peers command lofty valuations based on growth expectations, Capri Global’s more measured multiples may appeal to investors prioritising stability and value.

Looking ahead, the company’s ability to sustain its ROCE above 11% and maintain asset quality will be critical in justifying its current valuation. Investors should also monitor sector-wide developments, including interest rate movements and credit demand trends, which could materially impact NBFC valuations.

Conclusion

Capri Global Capital Ltd’s recent valuation grade adjustment from very attractive to attractive reflects a maturing market view that balances growth potential with inherent sector risks. Its P/E ratio of 19.64 and P/BV of 2.48 position it as a competitively priced NBFC stock relative to its more expensive peers. The company’s solid financial metrics and long-term outperformance versus the Sensex underscore its investment merit.

For investors seeking exposure to the NBFC sector with a focus on valuation discipline, Capri Global offers a compelling proposition. However, the downgrade in Mojo Grade from Buy to Hold advises a measured approach, recognising both the opportunities and challenges ahead.

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