Sunday, September 28, 2014

Capri Global Capital Ltd - Revisit After A Long Time


First of all, the link where the stock was discussed for the first time here:
http://fundamentalstockideas.blogspot.in/2013/04/money-matters-financial-services-ltd.html

A US based real estate investment group had taken the control of the company when it got its name changed from Money Matters earlier, to Capri Global Capital Ltd, (CGCL) and they own about 50% of the shares.
Quintin E Primo III is non executive chairman of the Capri Global Capital India.
Details about board of directors and their profile:
Link: http://www.cgcl.co.in/about-us/board-of-directors.html

This should significantly reduce the risk that one feel investing in the company, after what happened in 2010, which is given in previous post.

As part of business activities, CGCL is predominantly focused into Asset Financing and Lending business. The Wholesale Lending Business segment provides specialized and holistic solutions to Indian corporates helping them build and grow their businesses with initial funding, mezzanine financing, acquisition financing etc. We focus on products in the structured credit space backed by adequate collaterals and cash flows to build a secured and quality wholesale lending portfolio.

In FY'14, the wholesale lending division disbursed loans amounting to 380.10 Cr, with overall income from the division’s lending book increasing by approximately 28% to 103.44 Cr as compared to 81.03 Cr earned in the previous year.
The division’s outstanding disbursement stood at 505.11 Cr as on March 31, 2014, growing from ` 391.17 Cr during FY'13.
Loan Book of the Company stood at 736.16 Cr in FY'14 as compared to 426 Cr in FY'13 showing a growth of 73% during the year.
Disbursements to the MSME sector in FY'14 was close to 224 crores, an increase of 564% over the previous year, while the disbursements to wholesale lending business aggregated 379 crores in FY'14, showing a healthy growth of 29% over the previous year.

The Company continued to drive the businesses with renewed energy and build on the platform created over the last two years. Company has identified industry clusters with high business potential and has opened branches at Delhi, Mumbai, Ludhiana, Ahmadabad, Pune, Surat & Rajkot to tap customers in the Micro Small & Medium Enterprise (MSME) segment.
Going forward it is planned that the MSME vertical would far exceed the disbursements of the Wholesale lending vertical. Management also has plans to leverage balance sheet during the next fiscal and has received encouraging response from public sector banks.

Few important and good points to have a look at:
1) The company continues to stay debt free.
2) On account of that and others, the book value of the company has gone up to 272 Rs per share now, which means the stock is trading at 0.6 times of book value.
3) Again in the first quarter of FY'14, the promoters accumulated 5% shares from open market, taking a total promoter holding to almost 74%.
4) The company is still trading at a P/E ratio of close to 7.

Major Risk:
1) Rajesh Sharma still holds about 25% share of the company.
2) Cash flow continues to remain negative since FY'11, though it has come down a bit.

Disclosure:
Valuation wise, the company may be trading cheaper, but as I always say, conviction is the biggest factor in stock markets. What happened earlier, will always be at the back of every big investor's mind. Hence those, who are not prepared to make such investments, can still prefer to be with Dewan Housing and Can Fin Homes, on a safe side, which were recommended earlier on this blog.
The only point for bringing this here again, is that, I genuinely feel, this is among rare stocks which haven't been given any appreciation in the just past rally, though with a reason.
No targets will be given. The recommendation is just about company's performance, which is expected to improve further.
Those with a decent risk appetite can consider this as a seriously good option for long term investment, especially those who missed it earlier
Please go through all the details given here so far, as well as on internet, before deriving a conclusion on the same.

ALL THE BEST!!!!

97 comments:

  1. Hello everyone, I have seen few followers complaining about control print bought at high and then it fall little.
    When fundamental are intact, such falls we can predict by using technical. By this we can save little bit money.
    I have seen a blod where no stock is recommended but tech levels of nifty are written in simple manner that we can decide when to buy a fundamental stock idea.
    Just type " money manthan blog" in Google. Its by nishit.
    Simple language. Then you can decide the course yourself.
    This is just a info I am sharing, not a promotion at all.
    Kunal if you find it appropriate , then and then allow this post.
    Remember, fundamental first and then technical too.
    It can save you to save some of your capital that you can buy at lower level.
    -Anand

    ReplyDelete
  2. FY 13 sales 1853 Cr, but FY 14 sales just 158 Cr. Incidentally, the NPM rose 15 times over this period.....from 3.98 in FY13, to 49.2 in FY14....,,, can you explain?

    ReplyDelete
    Replies
    1. Hi Bhanu,

      The pattern of showing results got changed from Jun'13 numbers.

      The details were discussed when I presented my views on their Jun'13 numbers here:
      http://fundamentalstockideas.blogspot.in/2013/08/capri-global-capital-ltd-mmfsl-q1-result.html

      Regards.

      Delete
    2. If you check the quarterly numbers in detail, they have re-calculated the previous quarter, on the basis of how it is getting calculated since Jun'13 numbers...
      If you consider the FY'14 sales at 158 Cr, then FY'13 sales were at 120 Cr or so, after re-calculation...
      Unfortunately, the bse site is not updated with those details yet, hence some confusion....

      Delete
  3. The Cashflow in FY-14 has gone to -130 crores from -29 crores.

    ReplyDelete
    Replies
    1. On sites that I refer, I can see Net Cash Flow at -6.38 Cr in FY'14 from -29.06 Cr in FY'13..

      Delete
  4. Hi Kunal Banker,

    where to check whether a company is debt free and cash rich.
    any links can u provide. Thank u.

    ReplyDelete
    Replies
    1. There are plenty of free sites available, to check financial details of the company..
      I mostly prefer moneycontrol.com and screener.in ...

      Delete
  5. Hi Sir,

    Your vies on GTL Infra. Kindly suggest.

    Thanks.

    ReplyDelete
    Replies
    1. Unfortunately, not tracking any infra stocks...

      Delete
  6. hi Kunal ,

    Pls share ur views on opto circuits and ybrant digital

    ReplyDelete
    Replies
    1. Not strictly tracking YBrant Digital, as the sector is tough, but the same sector leaves plenty of scope for the company to grow further...
      Their delivery and efficiency of management will prove to be decisive...
      Don't see any undervaluation play at present in the stock, after the recent run-up, but the segment in whole has lots of potential...
      At CMP, I would be neutral on it..

      Not tracking Opto Circuits.

      Delete
  7. Hi Kunal, I am not in sync with the articles since many months and I am outdated. my last entry is Dhanuka Agritech. So could you please suggest me some equities to buy. I had trust in you, whatever you suggests that will become an midlevel to higher. Also I had booked profits in many shares because of your suggestions. I will take risk. Please suggest.

    ReplyDelete
    Replies
    1. Hi Sridhar,

      Good to see you back after a long time..

      To give all the names at a time, would be difficult for me as well. The best thing you can do, is to continue following markets from now on.
      I personally feel, no time is wrong to enter a good stock.
      But still, if you are looking for something which has not gone up much, after the recommendation here, and if you are ready to take some risk, you can take a look at Control Print, Flex Foods and Steel Strips Wheels to name a few...

      Regards.

      Delete
    2. Thanks!!! Kunal for your suggestion.

      Delete
  8. Hi Kunal,

    What is your view on the below stocks,

    1. Control Print,
    2. Asian Granito,
    3. Waterbase,
    4. TV Today,
    5. Natural Capsules,
    6. Caplin Point Laboratories,
    7. Excel Industries

    ReplyDelete
    Replies
    1. Control Print has already been recommended here, a few weeks back. Check out left hand side widget on top of page, for list of recommended stocks so far..

      Among the rest, positive on Waterbase, Caplin Point and Excel Industries...
      Not tracking rest...

      Delete
    2. Thanks for the reply, Kunal

      Delete
  9. What is your view on Talbros Auto and Nile?

    ReplyDelete
    Replies
    1. Not strictly tracking Talbros Auto..

      About Nile, I have it in my watchlist since long..
      Fundamentally, don't find much issues investing in this company..
      But they are leading manufacturer of Lead and Lead Alloy, which produces very very high amount of pollution. Their products are extremely harmful for the environment...
      My heart is not ready to go with this, else fundamentally, its a decent stock.. :)

      Delete
  10. Hi Kunal,

    Do you track any paper stocks? Paper stocks have not participated in this rally and they are available at decent valuations. I'm planning to buy TNPL or International Papers. Which stock is better between these two?

    Regards,
    Jay

    ReplyDelete
    Replies
    1. Among the 2, in terms of valuation, I feel TNPL is better placed...
      Not a big fan of sector as a whole...

      Delete
    2. Thanks Kunal :-)

      Delete
  11. Is Mold-Tek packaging good for long term investment?

    ReplyDelete
    Replies
    1. Yes, can be considered equally good investment option as Manjushree Technopack...
      Both have shown very good appreciation in past 1 year, so your entry point will be crucial and according to your risk profile, and your investment time-frame...

      Delete
  12. What is your view on Lanco Industries, Lumax Technologies and MM Forgings Limited?

    ReplyDelete
    Replies
    1. Positive on Lumaxc Tech and MM Forgings..
      Not tracking Lanco..

      Delete
  13. How is wanbury ltd for long term

    ReplyDelete
    Replies
    1. Was not tracking it, but just based on brief look, i would say not quite impressive balance sheet. Also, the growth doesn't seem to be inline with overall pharma industry in past 2-3 years..
      From just valuation perspective, it might be cheap, but all things don't seem to be positive, as far as my views are concerned..
      However, will keep a watch and see if things change going ahead..

      Delete
  14. Dear kunal , Wishing u n ur family . A very happy dussera.

    Pls share ur views on : Escorts, tilaknagar industries,Radico khaitan

    ReplyDelete
    Replies
    1. Hi Sudheer,

      Thank you very much, and a very very happy dussera to you and your family as well...

      If you see growth picking up in India in coming years, Escorts is not a bad option, based on its product portfolio...

      Among the breweries and distilleries space, I personally like Radico Khaitan more, though not fully convinced with any in the sector at present....
      However, relatively, I would prefer Radico.... :)

      Regards.

      Delete
  15. Hi Kunal,

    What is your view on

    1. Polyplex
    2. Patels Airtemp
    3. Munjal Showa
    4. Oriental Carbon

    ReplyDelete
    Replies
    1. Like Patel Airtemp, Munjal Showa and Oriental Carbon, among the names listed...
      Not much idea about Polyplex..

      Delete
    2. Thanks a lot for the quick reply Kunal.

      Delete
  16. Are "SMS Pharmaceuticals" and "Sequent Scientific" good for long term investments?

    ReplyDelete
    Replies
    1. No idea about Sequent Scientific, but like the recent performance of SMS Pharma...
      Decent stock for long term..

      Delete
  17. Sir, what do you think about the stocks

    a) RS Software and b) Samkrg Pistons and Rings

    ReplyDelete
    Replies
    1. RS Software is strong fundamentally, especially with its excellent presence in the ePayment sector. Since the stock had a decent run-up in past 12-18 months, it can be kept in long term portfolio, which might deliver steady returns going ahead...

      Not tracking Samkrg Pistons and Rings.

      Delete
    2. Thanks sir for replying my query

      Delete
  18. Is AIMCO Pesticides good for long term?

    ReplyDelete
  19. Cera Sanitaryware came out with another great set of numbers..
    Growth in sales was always the feature of their result sheet, however, net profit surprised every one this time. A growth of close to 50% was seen, yoy, after so many quarters of sub-dued profit growth..

    On top it, the management have raised their revenue growth target to 33% from 30% earlier, on annual basis, and that too, after posting about 27% growth in first six months. That speaks a lot about confidence of management in the company, and about the level of surprises stored in next 2 quarter results..

    The growth this quarter, looked even more encouraging, because the company faced a shutdown of about 10 days at their Kadi plant in Gujarat due to heavy rains.

    Going ahead, management is expecting even better growth in profits as well, which means that we are going to see annual EPS standing near or may be above, 50 this time, which will be great.

    All the best!!!!

    ReplyDelete
    Replies
    1. Link to Management Interview is shared in left hand side widget regarding recent updates on stock.

      Delete
  20. An NBFC without debt!! Interesting, but how can it be possible when they are disbursing 700+cr PA? Will surely look into this.

    ReplyDelete
  21. Your view on IFGL Refractories. Can it be bought @ CMP?

    ReplyDelete
    Replies
    1. Positive on IFGL, even at this rate...
      Dips can be used properly to avoid risk, as it has jumped a lot in past year...

      Delete
  22. Sarath RamakrishnanOctober 10, 2014 at 12:52 AM

    Hi Kunal,

    Hope you are doing fine.
    Did you get a chance to do a bit of research on Kellton Tech ? Looks like it enjoys continuous upper circuits :) Is it advisable to enter at CMP ??

    Thanks

    ReplyDelete
    Replies
    1. Yes, and still in favour of same opinion..
      Undervaluation is there, plus their services & expertise in areas of IT are pretty good...
      But still, the general problem with IT industry is always there as a worry..

      Delete
  23. Hi Kunal

    Need your view on Shivam AutoTech is part of Hero Group world,s largest bike Manufacturer. Can it be bought at current level

    ReplyDelete
    Replies
    1. looking good but no such appreciation since last year.....sales were flat....will do more analysis on it.....

      Delete
    2. Read the note section of below post at the end... :)
      http://fundamentalstockideas.blogspot.in/2014/05/munjal-auto-industries-accelarating.html

      Still positive on it...

      Delete
  24. Dear Kunal , Whats your view on Firstsource Solutions for a long term investment ?

    ReplyDelete
    Replies
    1. Same difficulty in predicting IT stock for long term..
      However, being a big name, and a company with healthy market cap, lack of dividend payment doesn't look good...
      Rest of data is decent...
      Just on brief. at current price, I would be neutral on it. Not a case under-valuation in my opinion..

      I mostly avoid giving directions on IT companies, because I am not able to apply few of my judging parameter on it... :)

      Delete
  25. Hi Kunal.

    i have 2 shares of infosys. today infosys announced 1;1 bonus.. so it means i will have 4 shares
    valued each at 3888 todays CMP or half of 3888. thanks in advance

    ReplyDelete
    Replies
    1. half of 3888...
      However not exactly 3888, but at price as on ex date of bonus allotment... :)

      Delete
  26. Sir whats uor view on SKM Egg Products? Can it be A Multibagger from Current Levels?

    ReplyDelete
  27. Hi Kunal , Would like to know your views on EPC Industries under Mahindra at cmp. Revenue CAGR of approx 25% for last 4 years .

    ReplyDelete
    Replies
    1. Margins is major concern...
      For heavy returns from current levels margins has to improve...
      Sales may have grown well, but profits has always been in check...

      Delete
  28. Hello Kunal .. Thanks for this wonderful blog of value investing .Have you looked in to Black Rose Industries ?

    ReplyDelete
    Replies
    1. Please let me know if there is anything so attractive about the stock..
      I am not much into it..

      Delete
  29. Kunal are you tracking Nath-Bio Genes ?

    ReplyDelete
    Replies
    1. Not tracking Nath-Bio Genes..
      From the Agro based sector, I am not tracking many stocks...
      Mainly focused on Dhanuka Agritech...

      Delete
  30. Hi Kunal , what about entering RS Software at this price ?

    ReplyDelete
    Replies
    1. Please use search on this page...
      Just replied a few days back...

      Delete
  31. Dear Kunal are you tracking Triton valves ?

    ReplyDelete
    Replies
    1. Positive on business, neutral at current market price of stock...

      Delete
  32. Sir, what is your view on Symphony? Is it a good stock for long term?

    ReplyDelete
    Replies
    1. I was tracking it strictly around Feb'14, when it was trading around 500 Rs..
      You can find my mention about the same in comments section on below post:
      http://fundamentalstockideas.blogspot.in/2014/02/camlin-fine-sciences-hidden-player-in.html

      Use search functionality on page, to see the comment..

      Somehow, at that time, I felt it was trading expensive... Now I don't know, what to say, when it has started trading above 1500...
      Market leaders and monopoly holders in most sector, have appreciated a lot in past rally...

      Even if I assume 50% jump in net profit for FY'15, it would take annual EPS around 40 levels or so, which means, the stock is already trading at 37-38 times of FY'15 earnings... :)

      At present levels now, I feel, it can be used as safe investment option, rather than multi-bagger... Its one of the stock, which you can hold in life long portfolio, enjoy dividends and steady returns.... :)

      Delete
  33. Dear Kunal , Have you looked into SKM Egg Products ,the largest exporter and producer of egg powder and related products. ?

    ReplyDelete
    Replies
    1. Just replied 4 days back about the same...
      No idea about the company..
      Not in a position to comment..

      Delete
  34. Hi Kunal
    Whats your view on Indo Count Industries Ltd...Fundamentals look great...Waiting for your advice

    ReplyDelete
  35. capri global today good jump .

    ReplyDelete
  36. Hello Sir , what about Kesar Terminals ?

    ReplyDelete
    Replies
    1. Studying the company currently...
      Not in a position to comment anything conclusive at present...

      But definitely, it is worth a look..

      Delete
  37. Hi Kunal

    pls share ur views on crompton greaves and sintex. can i invest at current levels.
    ur 1 year conservative target..

    expecting multibagger diwali muhurat stocks. eagerly waiting

    ReplyDelete
    Replies
    1. Hi Venkat,

      I won't be giving any targets or recommendations at specific price on any stocks. We will just discuss if the company and its business is looking good or not....
      This has to be followed as per the SEBI guidelines...
      I am still trying to dig into their rules, to find out complete details, but as of now, we will stop discussing any targets on this blog...

      Among the stocks you have mentioned, I like Sintex..
      Not much idea about Crompton..

      Delete
  38. Hi Kunal. I am new to your blog. First of all i would like to thank you for this wonderful opportunity you are providing to novice investors like us. I would like to know your views on Balmer Lawrie and Force Motors and Stylam industries. thanks in advance.

    ReplyDelete
    Replies
    1. Positive on Balmer Lawrie and Stylam Ind....
      Neutral on Force Motors.

      Delete
  39. Hi Kunal, any idea why Granules is being hit hard in comparison to peers? going down and down just before teh results?
    -mayur

    ReplyDelete
    Replies
    1. It is not about the upcoming results...
      Whenever there is a profit booking happening in overall market, the first ones to take the hit are the ones that have appreciated the most in past 1 week/month/year, unless there is some recent updates on the specific counter...

      However, that's not what I would be concerned with, being a long term investor...
      You have to take your decisions wisely...

      Talking about the negatives, I observed one more thing. On the last day prior to closure of trading window, plenty of selling was done, by the inside members, though none of them were promoters I suppose...

      So, there are plenty of angles you can think of, but as long as business is doing good, I would feel safe, atleast for longer term.... :)

      Delete
  40. Hi Kunal,
    Just wanted to know for how many days once u share new stock tip.

    ReplyDelete
    Replies
    1. It depends on my gaining confidence in the company..
      Don't have a fixed timeline...

      Delete
  41. Sir waiting for next gem for diwali gift. When cn we expect. Thanks

    ReplyDelete
    Replies
    1. Will be posting details related to new company very soon...

      Delete
  42. I'm planning to buy international paper/ ANDHRA PAPER.?

    ReplyDelete
    Replies
    1. As I said earlier, I would not be recommending anyone to buy/sell/hold any stock at any specific price...
      We will just discuss the company and all details related to it,,
      Regarding the name you mentioned, I am not tracking any stocks from that sector, as I am not too convinced about any company..

      Delete
  43. Everything is available at a discount of 20% to 25% be it Gulshan Polyols, Ricoh India, Flex Foods or Munjal Auto !!! What for we are waiting for? Is it one for one free ? There were certain counters we wanted to buy but could not as the market was too hot to attempt for but a healthy technical correction has taken place. If we believe in long term story of the scrip.....This Diwali....a decent sale is open :-)

    totalview

    ReplyDelete
  44. Whats ur view on Mindtech India?

    ReplyDelete
    Replies
    1. Positive on current valuations... not much on the sector itself, as usual..

      Delete
  45. hi krunal ,
    happy dhanteras in advance .
    aurion pro cmp 270 any idea about this com. becoz three indeppendent director joining and growth prospectus good.

    ReplyDelete
  46. HI Kunal,

    How a stock opens with UC as soon as market starts.

    ReplyDelete