Capri Global Capital Ltd Valuation Shifts Signal Renewed Price Attractiveness

Valuation Metrics and Recent Changes

As of 16 Feb 2026, Capri Global Capital Ltd trades at ₹177.65, slightly down by 0.84% from the previous close of ₹179.15. The stock’s 52-week range spans from ₹150.60 to ₹231.70, indicating a considerable volatility band. The company’s P/E ratio currently stands at 20.25, a figure that has shifted its valuation grade from very attractive to attractive. This subtle increase in P/E suggests a modest re-rating by the market, reflecting either improved earnings expectations or a slight premium in price.

Complementing the P/E, the Price to Book Value ratio is at 2.56, which remains within an attractive range for NBFCs, signalling that the stock is still reasonably priced relative to its net asset value. Other valuation multiples such as EV to EBIT (11.87) and EV to EBITDA (11.41) further reinforce the company’s moderate valuation stance, especially when contrasted with peers in the NBFC sector.

Comparative Analysis with Industry Peers

When benchmarked against its industry counterparts, Capri Global’s valuation appears notably more reasonable. For instance, Go Digit General Insurance and Star Health Insurance trade at P/E ratios of 57.94 and 61.91 respectively, both classified as very expensive. Similarly, Manappuram Finance and Anand Rathi Wealth Management exhibit P/E ratios exceeding 60, underscoring a significant premium over Capri Global’s valuation.

Even within the NBFC space, Capri Global’s EV to EBITDA multiple of 11.41 is substantially lower than Go Digit’s 120.35 and Star Health’s 47.19, highlighting a more conservative valuation approach by the market. This relative affordability could appeal to value-conscious investors seeking exposure to the NBFC sector without the inflated multiples seen in some peers.

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, indicating a stable operational efficiency and shareholder return profile. These figures, while not extraordinary, are consistent with the company’s valuation grade and suggest a steady earnings base supporting the current price levels.

The company’s PEG ratio of 0.23 is particularly noteworthy, signalling that the stock is trading at a significant discount relative to its earnings growth potential. This low PEG ratio often attracts investors looking for growth at a reasonable price, reinforcing Capri Global’s appeal despite the recent downgrade in its Mojo Grade to Hold (from Buy on 19 Jan 2026).

Stock Performance Relative to Market Benchmarks

Examining Capri Global’s stock returns relative to the Sensex over various time frames reveals a mixed but generally positive trend. Over the past year, the stock has delivered a 7.37% return, slightly underperforming the Sensex’s 8.52%. However, over a five-year horizon, Capri Global has outpaced the benchmark significantly, delivering a 106.07% return compared to the Sensex’s 60.30%. The ten-year return is even more impressive at 2649.79%, dwarfing the Sensex’s 259.46% gain, underscoring the company’s long-term wealth creation capability.

Shorter-term returns show some volatility, with a 1-month decline of 1.58% versus the Sensex’s 1.20% fall, and a year-to-date drop of 2.82% compared to the Sensex’s 3.04% decline. These fluctuations reflect broader market dynamics and sector-specific factors impacting NBFCs.

Valuation Grade Downgrade and Market Implications

The downgrade of Capri Global’s Mojo Grade from Buy to Hold on 19 Jan 2026, alongside the shift in valuation grade from very attractive to attractive, suggests a cautious stance by analysts. While the stock remains reasonably priced, the market may be factoring in potential headwinds such as sectoral regulatory changes, credit risk concerns, or macroeconomic uncertainties affecting NBFCs.

Investors should weigh these factors against Capri Global’s solid fundamentals and comparatively attractive valuation multiples. The company’s moderate dividend yield of 0.11% and consistent profitability metrics provide some cushion, but the modest yield also indicates a focus on reinvestment and growth rather than income generation.

Conclusion: Assessing Capri Global’s Investment Appeal

Capri Global Capital Ltd’s recent valuation adjustments reflect a market recalibration rather than a fundamental deterioration. Its P/E and P/BV ratios remain attractive relative to peers, and its operational metrics such as ROCE and ROE support a stable earnings outlook. The company’s PEG ratio further highlights its potential for growth at a reasonable price, a key consideration for long-term investors.

While the downgrade to a Hold rating advises caution, the stock’s historical outperformance over medium and long-term periods suggests that Capri Global remains a compelling candidate for investors seeking exposure to the NBFC sector with a balanced risk-reward profile. Monitoring sector developments and company-specific earnings updates will be crucial in determining the stock’s trajectory going forward.

Unlock special upgrade rates for a limited period. Start Saving Now →