Capri Global Capital.
Market cap= about Rs 600 crores
P/E=about 7 (considering TTM)
Noticed this company in some ones portfolio on Valuepickr and did some work, a very small effort by an engineer. Just an initiation, would expect a detailed discussion.
Background of company: It is erstwhile MoneyMatters for those who remember 2010 Housing Finance Scandal. The CEO was arrested by CBI for alleged bribing of PSU bank executives. Would like to caution that the earlier promoter Rajesh Sharma and associates still own about 25% of the shares.
But story seems to have changed now and looks like a turn around story, Capri Global partners, a US based real estate investment group has taken the control of the company and now owns about 50% of the shares. Its chairman Quintin E Primo III is now Non Executive chairman of the Capri Global Capital India and is very serious about leveraging the expertise of Capri Capital to grow Capri Global India. And has been a successful international investor.
Quintin E Primo III a 1st generation entrepreneur is a Harvard MBA, built Capri Capital with a few others Harvard /Kellog/Wharton MBAs. Their background looks very solid.
Primo had a humble beginning and has grown Capri brick by brick. From what I have read and watched about him so far, have been impressed and he sounds like a very ethical person.
Capri Global has transitioned from fee based Investment advisers to a Lending organisation / a full fledged NBFC. One interesting aspect of Capri Global India is, its networth is about Rs 970 crores and no loan.
They have 3 verticals of lending , SME lending(Rs 280 crores) , Wholesale Lending (Rs 505 crores)and now they are planning to finance affordable housing.
Whole sale lending consists mainly Residential real estate.
Their CAR is 94% compared to 15% of the regulatory norm hence they could borrow multiple times their current loan book, so huge potential. Technically they could stretch their loan book by another Rs 6000 crores. They have aggressive plans of expansion in tier two/three cities in next 2 years. The average age of the employees is just 31 years and there are only 145 employees.
The major risk and concern is Mr Rajesh Sharma is on board and holds about 25% of the company shares. Dont know whats the future strategy of the Capri Global, can a Foreign company own more than 50% in the NBFC? what is the regulation?
Now, how will they manage borrowing funds with history and legacy of MoneyMatters?
I am naive in finance but will table some of the financial details below. I know may of you have very fine understanding of financials. Please contribute and advise if its worth investing.
|Year||Networth (INR cr)||AUM (INR cr)||CAR (%)||NP(INR cr)||NIM (%)||Net NPA (%)||ROA (%)||D:E|
Since it has very recently transitioned into a lending company from Investment adviser company the above financial numbers may not make much sense. But to what extent the book value is real? and can this company manage to become a wealth creator Under Capri Capital Partners? Views invited.Disclosure: Considering an investment.