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!!!!