Shares of Capri Global rose nearly 1.5% today amid a market crash after the NBFC said it plan to enter the gold loan business in the first half of financial year 2022-23.
Capri Global stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has gained 65.18% in one year and risen 13.24% since the beginning of this year. In a month, the stock has climbed 9.52%.
Total 0.11 lakh shares of the firm changed hands amounting to a turnover of Rs 764.72 lakh on BSE.
Market cap of the firm stood at Rs 10,419 crore. The company is aiming at loan book size of Rs 8,000 crore and expand its network with 1500 branch locations over the next five years.
Speaking about the business diversification, Rajesh Sharma, Managing Director, Capri Global Capital Ltd. said, “This is in line with our long-term expansion strategy. We see immense scope in the gold loan market as financial distress due to the pandemic has increased demand for credit across low-to-medium income households. Due to the emotional value associated with gold, people pledge their gold as collateral and secure a short-term loan rather than selling it. The trend is very evident in the rural and semi-urban geographies of the country.”
Meanwhile, Sensex fell 853 points to 56,830 and Nifty slipped 257 points to 16,949 amid rising tensions between Ukraine and Russia.
In the December quarter of the current fiscal, the firm reported a 32% rise in net profit to Rs 64.89 crore against Rs 49.14 crore in Q3 of the previous fiscal.
Sales rose 32.34% to Rs 248.09 crore in Q3 against Rs 187.47 crore sales in the corresponding quarter of previous fiscal. Profit rose 23.72% on a quarter on quarter basis from Rs 52.45 crore.
Sales too climbed 16% on a Q-o-Q basis from Rs 213.88 crore in the September quarter of the current fiscal.
Capri Global Capital is a non-deposit taking, non-banking finance company. The company is engaged in funding and provision of financial services, except insurance and pension funding activities.
