Capri Global - Rs 300 Billion AUM Target For FY27: ICICI Securities

ICICI Securities Report

Capri Global Capital Ltd. has been successfully executing its revamped business strategy. The strategy encompasses a keen focus on scaling the gold loans business, expanding its partnership network for co-lending/car loan distribution and leveraging its pan-India distribution to grow MSME/housing in a calibrated manner.

The more than 50% YoY AUM growth with gold loan AUM growing three times YoY and fee income from car loan distribution/co-lending contributing more than 15% to net income in FY24 are testament to the efficacy of its strategy.

Higher growth under co-lending/car loan distribution also enables effective capital utilisation, which in-turn should help the company deliver its aspirational mid-teen return on equity by FY27.

Capri Global plans to scale its AUM to Rs 300 billion by FY27 – gold/housing loans would drive growth and likely grow more than 30% in the next two–three years.

Retain Add; target price revised to Rs 230 (from Rs 200, previous target price adjusted for stock split and bonus issue), valuing the stock at 2.1 times on Sep’25E book per share.

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