Capri Global (CGCL)
Fast GrowerFairStock Score: 72/100 — STEADY
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹226.52 |
| Market Cap | ₹21,794.71 Cr |
| P/E Ratio | 19.31 |
| ROCE | 11.18% |
| ROE | 19.61% |
| Dividend Yield | 0.09% |
| Profit Growth | 109.17% |
| Debt/Equity | 3.35 |
| Sales Growth | 60.9% |
| Free Cash Flow | ₹-4,252 Cr |
| Promoter Holding | 59.92% |
| 52-Week Range | ₹151.1 — ₹287.5 |
| Sector | Finance |
| Book Value | ₹74.72 |
Strengths
- Strong growth momentum: sales up 46.41% and profit up 120.17%.
- ROE of 19.61% shows efficient capital generation for a lender.
- Piotroski F-Score of 7/9 indicates improving financial health.
- Promoter holding of 59.92% aligns interests with minority shareholders.
- Latest quarter net profit margin of ~20.9% (₹255 Cr profit on ₹1,220 Cr revenue) is impressive.
Concerns
- High leverage with Debt/Equity of 3.62x; any asset quality shock could amplify losses.
- Negative free cash flow of ₹-4,252 Cr signals heavy cash consumption.
- No margin of safety at current price: Graham Number is ₹101.52 vs price ₹184.15, margin of safety -57.29%.
- Altman Z-Score of 1.30 is a caution flag, though not ideal for NBFCs.
AI Analysis
When I evaluate any company, I ask whether the numbers give me margin of safety. Capri Global, an NBFC, has growth that immediately catches the eye: sales up 46.41% and profit up 120.17%. Return on equity of 19.61% is respectable. But Graham would tell me to look at the balance sheet before getting excited. The company carries debt of 3.62 times equity. That is high leverage, and free cash flow is a worrying ₹-4,252 crore. I understand a growing lender consumes cash to build its loan book, but a figure like that demands scrutiny. The market price is ₹184.15, more than four times book value of ₹44.73. The Graham Number is ₹101.52, and the margin of safety is negative 57.29%. There is no cushion for error. The Altman Z-score of 1.30 also puts up a caution flag, even though I know Z-scores are imperfect for financial firms. The Piotroski F-score of 7/9 is encouraging; it tells me profitability and balance-sheet signals have improved. And the PEG ratio of 0.28 suggests the market is paying little for the high growth rate. But that growth is built on leverage, and leverage is what kills lenders in a downturn. The promoter holding of 59.92% is positive, but I cannot ignore the negative cash flow. I would call this a fast grower, not a steady compounder. A great business must also be a great investment at the right price. At ₹184.15, I do not have margin of safety. I would keep this on my watchlist and wait for a better entry point.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer