Examining how Capri Global Capital Limited (NSEI:CGCL) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how Capri Global Capital is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its capital markets industry peers. Check out our latest analysis for Capri Global Capital
Could CGCL beat the long-term trend and outperform its industry?
I prefer to use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This blend enables me to assess various companies in a uniform manner using the latest information. Capri Global Capital’s most recent twelve-month earnings is ₹744.2M, which compared to last year’s level, has increased by more than double. Since these figures are relatively myopic, I’ve estimated an annualized five-year figure for Capri Global Capital’s net income, which stands at ₹681.8M. This means on average, Capri Global Capital has been able to consistently raise its earnings over the last couple of years as well.
What’s enabled this growth? Well, let’s take a look at whether it is solely because of industry tailwinds, or if Capri Global Capital has seen some company-specific growth. Over the past couple of years, although bottom-line growth has seen a weakening, top-line growth has fallen by a lot more, resulting in a margin expansion and Capri Global Capital still maintaining profitability. Looking at growth from a sector-level, the IN capital markets industry has been growing its average earnings by double-digit 22.68% over the past twelve months, and 11.83% over the previous few years. This suggests that whatever uplift the industry is benefiting from, Capri Global Capital is capable of leveraging this to its advantage.
What does this mean?
Though Capri Global Capital’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Capri Global Capital gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Capri Global Capital to get a better picture of the stock by looking at:
1. Financial Health: Is CGCL’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.