Capri Global: Analyzed by JM Financial

Key Points

• JM Financial recommends ‘Buy’ for Capri Global at ₹245.
• Capri Global focuses on retail lending with strong asset quality.
• Gold loans and MSME lending drive significant growth potential.
• Non-interest income boosts profitability and provides stability.
• AUM is projected to grow by 35% between FY25-FY27.
• Key risks include gold price drops and MSME economic stress.

Capri Global Overview

JM Financial has given Capri Global a positive rating, suggesting investors should buy the stock. The company’s strategy involves lending money, specifically to retail customers. This means they focus on borrowers like individuals and small businesses, a smart move in today’s market.

Capri Global started in 2011 and has grown by lending money in a very specific way: they only give out loans where the borrower already has something valuable to offer as collateral. Around 80% of their lending is to retail customers, making their business less risky. They initially started with construction loans, then expanded to lending to small businesses in 2013, and finally added housing loans in 2017.

To take advantage of rising gold prices, Capri Global started offering gold loans in 2022. More recently, in 2025, they launched ‘micro-LAP’ loans, which are small loans for businesses. They also have a business where they help arrange car loans, bringing in regular income.

Growth Strategies

Capri Global’s success is driven by a few key things. They’re really good at lending money through gold loans – this is a big part of their growth. They also have a strong interest in lending to small businesses (MSMEs), which is also growing well.

Because they’re smart about how they lend money, they can also generate income from things *besides* just lending. For example, they get paid fees for helping businesses get loans through ‘co-lending,’ and they have a separate business arranging car loans.

To keep things stable and increase income, Capri Global is planning to increase lending to MSMEs that offer lower interest rates, balancing the higher returns from their gold loan and micro-LAP activities.

Financial Projections

JM Financial predicts Capri Global will grow its lending business significantly. They expect the company’s total lending to increase by about 35% from now until 2027. This growth is fueled by lending to MSMEs and the success of their gold loan business.

As a result of this growth, Capri Global is expected to earn more money. JM Financial projects that the company’s profits will grow by around 62% between 2026 and 2027, and the company’s returns to investors will be pretty good. This is based on the company’s ability to manage its costs well.

Important Considerations

Capri Global’s business is dependent on a few things staying stable, such as the prices of gold and the overall health of small businesses. If these things change badly, it could impact the company’s performance.

The company’s loans are ‘secured,’ meaning borrowers have something valuable to offer as collateral, making them less risky. However, even with these measures, there are always potential risks, such as a drop in the price of gold or a slowdown in the economy.

“Capri Global’s strategy of focusing on retail lending with secure loans presents a solid opportunity for investors.”