CGCL.NSE Capri Global Capital Ltd

Acuité Ratings said that the rating derives strength from healthy capitalization levels and strong resource raising ability of the Capri Global Group at competitive rates and adequate liquidity buffers. The company had raised fresh capital of Rs 1,440 crore during Q4 FY23 through rights issue which has helped them augment their capital position. CGCLs (standalone) CAR stood at 37.15 percent as on 30 June 2023. The rating considers CGCLs comfortable capitalization levels marked by networth of Rs 3,565.47 crore with a leverage at 2.11 times as on 31 March 2023. The rating also draws strength from the sustained growth in AUM, driven by strong disbursements and healthy asset quality indicators, its wide geographical presence, and granularity of the assets. The AUM of CGCL (consolidated) increased to Rs 10,320.40 crore as on 31 March 2023 from Rs 6,632.90 crore as on 31 March 2022. Further, the AUM increased to Rs 11,226.20 crore as on 30 June 2023. CGCL on a consolidated basis reported gross nonperforming assets (GNPA) of 1.9 percent as on 30 June 2023.The rating is however constrained by moderation in the profitability metrices as indicated by a decline in return on average assets (ROAA) to 2.17% in FY 2023 from 3.18% in FY2022, continued delinquencies in MSME portfolio, and stagnant Net Profit for FY 2023. Further the rating also factors high concentration of loan portfolio in the top 5 states (Maharashtra, Madhya Pradesh, Rajasthan, Haryana and Gujarat) comprising approximately 80 percent of the AUM, moderate seasoning of the scaled-up loan book and its incremental contribution to the profitability indicators, high operating expenses on account of addition of new branches and susceptibility to risk inherent in the MSME and construction finance segment.Going forward, the groups ability to profitably continue the scale-up in business, particularly the gold loan segment, raising resources at competitive rates and maintenance of asset quality of its growing portfolio shall remain key monitorable.Capri Global Capital is nondeposit taking systemically important non-banking finance company (NBFC-ICC) engaged in extending loans to MSMEs loans secured against property and construction finance.The scrip fell 1.48% to currently trade at Rs 760.60 on the BSE.