Capri Global Capital Ltd Valuation Shifts Signal Renewed Price Attractiveness

Valuation Metrics and Market Context

Capri Global’s current price stands at ₹175.65, down 2.20% from the previous close of ₹179.60, trading within a 52-week range of ₹150.60 to ₹231.70. The company’s price-to-earnings (P/E) ratio of 20.02 is significantly lower than many of its NBFC peers, several of whom are classified as very expensive. For instance, Poonawalla Finance trades at a P/E of 92.7, Go Digit General Insurance at 58.84, and Star Health Insurance at 61.93. This relative valuation discount highlights Capri Global’s more moderate market pricing despite its robust fundamentals.

Further, Capri Global’s price-to-book value (P/BV) of 2.53 remains reasonable within the NBFC sector, where valuations often reflect premium multiples due to growth prospects and asset quality. The company’s enterprise value to EBITDA (EV/EBITDA) ratio of 11.34 also suggests a balanced valuation, especially when compared to sector heavyweights like Star Health Insurance with an EV/EBITDA of 47.2 and Anand Rathi Wealth at 48.76.

Financial Performance and Returns Analysis

Capri Global’s return on capital employed (ROCE) and return on equity (ROE) stand at 11.27% and 10.74% respectively, indicating efficient utilisation of capital and shareholder funds. These returns, while modest, are stable and provide a foundation for sustainable growth. The company’s PEG ratio of 0.23 further underscores its undervaluation relative to earnings growth potential, a stark contrast to peers like Nuvama Wealth with a PEG of 2.13 and Anand Rathi Wealth at 2.13, signalling Capri’s attractive growth-to-price relationship.

Examining stock returns relative to the benchmark Sensex reveals a mixed but promising picture. Over the past week, Capri Global outperformed the Sensex with a 4.99% gain versus the index’s 0.90%. However, over the one-month and year-to-date periods, the stock slightly underperformed, with returns of -2.71% and -3.91% respectively, compared to the Sensex’s -2.84% and -3.46%. Longer-term performance is more favourable, with a five-year return of 103.73% surpassing the Sensex’s 77.74%, and an extraordinary ten-year return of 2005.40% dwarfing the benchmark’s 230.79%.

Shift in Valuation Grade and Market Implications

On 19 January 2026, Capri Global’s Mojo Grade was downgraded from Buy to Hold, reflecting a recalibration of valuation attractiveness from very attractive to attractive. This adjustment is primarily driven by the company’s P/E and P/BV ratios moving closer to sector averages, signalling that while the stock remains reasonably priced, the margin of safety has narrowed somewhat amid recent price appreciation and sector dynamics.

The company’s market capitalisation grade remains modest at 3, indicating a mid-sized presence within the NBFC universe. This positioning offers a blend of growth potential and liquidity, appealing to investors seeking exposure beyond large-cap incumbents.

Comparative Valuation: Capri Global vs NBFC Peers

When benchmarked against peers, Capri Global’s valuation metrics stand out for their relative moderation. While many NBFCs and financial services firms trade at elevated multiples reflecting aggressive growth expectations, Capri’s P/E of 20.02 and EV/EBITDA of 11.34 suggest a more conservative market view. This is reinforced by its PEG ratio of 0.23, which is substantially lower than the sector’s high-growth names, indicating that the stock is priced attractively relative to its earnings growth trajectory.

For example, Poonawalla Finance’s P/E ratio of 92.7 and PEG of 0.97, or Go Digit General’s P/E of 58.84, highlight the premium valuations commanded by larger or faster-growing NBFCs. Capri’s valuation thus offers a compelling alternative for investors wary of stretched multiples but seeking exposure to the NBFC sector’s growth potential.

Risk Considerations and Dividend Yield

Despite its attractive valuation, Capri Global’s dividend yield remains low at 0.11%, reflecting a focus on reinvestment and growth rather than income distribution. Investors should weigh this against the company’s moderate returns on equity and capital employed, which, while stable, do not currently signal exceptional profitability.

Additionally, the NBFC sector continues to face regulatory scrutiny and macroeconomic headwinds, including interest rate volatility and credit risk concerns. Capri Global’s valuation adjustment may partly reflect these sector-wide risks, underscoring the importance of monitoring asset quality and capital adequacy metrics in the coming quarters.

Outlook and Investor Takeaways

Capri Global Capital Ltd’s recent valuation shift to an attractive grade, combined with its solid long-term returns and reasonable multiples, positions it as a noteworthy contender within the NBFC sector. While the downgrade from Buy to Hold signals a more cautious stance, the company’s fundamentals and relative valuation discount to peers provide a foundation for potential upside, particularly if sector headwinds ease and earnings growth accelerates.

Investors should consider Capri Global’s valuation in the context of its stable ROCE and ROE, low dividend yield, and moderate market capitalisation. The stock’s recent underperformance relative to the Sensex over the short term may offer a tactical entry point for those seeking exposure to a well-managed NBFC with a history of strong long-term returns.

Given the sector’s evolving landscape, continuous monitoring of asset quality, regulatory developments, and macroeconomic factors will be essential to assess Capri Global’s trajectory. For investors prioritising valuation discipline and growth potential, Capri Global’s current metrics suggest an attractive risk-reward profile compared to more richly valued peers.

Summary of Key Financial Metrics

Current Price: ₹175.65 | P/E Ratio: 20.02 | Price to Book Value: 2.53 | EV/EBITDA: 11.34 | PEG Ratio: 0.23 | Dividend Yield: 0.11% | ROCE: 11.27% | ROE: 10.74%

Capri Global’s valuation grade stands at “attractive” with a Mojo Score of 60.0 and a Hold rating, reflecting a balanced view of its prospects amid sector challenges.

Long-Term Performance Highlights

Over a decade, Capri Global has delivered a staggering 2005.40% return, vastly outperforming the Sensex’s 230.79%. This exceptional track record underscores the company’s capacity to generate shareholder value over extended periods, despite short-term volatility and sector headwinds.

Investors seeking exposure to the NBFC sector with a focus on valuation discipline and long-term growth may find Capri Global’s current pricing and fundamentals compelling, warranting close attention as market conditions evolve.

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