Capri Global Capital net profit rises 25.18% in the March 2014 quarter - Capital Markets

Capital Market,May 10, 2014 Last Updated at 16:19 IST

Sales rise 20.71% to Rs 39.40 crore

Net profit of Capri Global Capital rose 25.18% to Rs 26.20 crore in the quarter ended March 2014 as against Rs 20.93 crore during the previous quarter ended March 2013. Sales rose 20.71% to Rs 39.40 crore in the quarter ended March 2014 as against Rs 32.64 crore during the previous quarter ended March 2013.

For the full year,net profit rose 10.08% to Rs 81.76 crore in the year ended March 2014 as against Rs 74.27 crore during the previous year ended March 2013. Sales rose 20.61% to Rs 148.58 crore in the year ended March 2014 as against Rs 123.19 crore during the previous year ended March 2013.

Lok Sabha poll outcome: May 13 will be a bigger event than May 16, say analysts

By Kshitij Anand, ECONOMICTIMES.COM | 6 May, 2014, 01.29PM IST 

NEW DELHI: Although May 16, when election results are expected to come out, is supposed to be a very big and important day for the markets, but analysts feel that the big move in the markets may come in from May 13th onwards when the outcome of the exit polls starts trickling in.

"We have moved higher in the past couple of months with benchmark indices gaining over 6 per cent since March 2014. The basis of this euphoria on the street is the result of opinion polls, predicting a BJP-led government. But will the BJP have a clear and absolute majority remains to be seen," say experts. 

The exit poll data could be used as a proxy or foreshadowing of the actual results on May 16th and investors or traders might start taking action early.

"Whatever is the result of the exit polls, it will start impacting the markets from May 13 onwards. It is also possible that there is some privately carried out exit poll information for their private consumption available to some sophisticated investors," said Dr. Vikas V Gupta (Head- Research & Product Development) at ArthVeda. 

The recent run-up seen in benchmark indices confirms the fact that the markets are pricing in some probability of the BJP-led NDA government at the Centre. If the exit poll numbers are in favour of NDA, there is a possibility of a sharp up-move while a vice-versa situation could be disastrous for the markets, say analysts.

"I agree that 13th May would be a precursor to 16th May Lok Sabha elections results. If the exit poll numbers are in favour of NDA and Narendra Modi, the market will zoom and touch a all-time high on 13th itself," said Rajesh Sharma, Director, Capri Global Capital Limited.

"However, if the numbers reveal the probability of the hung Parliament, then the market will certainly tank by more than 500 points in a day, as the market had been moving up in anticipation of NDA coming to power at the Centre," he added. 

The euphoria ahead of elections results due in mid-May cannot be ruled out in the markets. The Indian markets have got support from strong inflows from foreign institutional investors (FIIs) who are almost certain of a Narendra Modi-led NDA government after the general elections.

Amid hopes of a stable and reform-oriented government after the general elections, foreign investors pumped in Rs 9,600 crore in Indian stocks in April, the eighth consecutive month of inflows, as per latest data. 

Analysts feel the time period between 13th and15th May will be very crucial for the markets and wild swings can be expected on either side. The strong expectations of the BJP-led government and extensive media coverage over exit polls would keep the sentiments positive. However, investors would prefer to hold a certain portion of their liquidity to cover unexpected results.

"Exit poll throws the ball park figure of the next government which the markets would react to immediately. Between 13 and 15th May 2014, the markets would be volatile and react to exit poll results and show a direction going forward," said Siddharth Sedani, Vice President (PMS) at Microsec Capital Ltd. 

Views of Mr. Sunil Kapoor, Executive Director, Capri Global Capital Limited on RBI’s Monetary Policy

“In today’s RBI Monetary Policy no major policy changes have happened. Considering that Inflation specifically CPI has eased during last 2 months and the Current Account deficit has also shown significant improvement it was expected that RBI will not make any significant change in the policy rates specifically on the upward direction.

Going forward key monitoring factors will be, formation of new government, impact of el Niño on monsoon performance and the current account deficit. However the positive macro signals along with expected improvement in GDP growth due to clearance of significant infrastructure projects will help a lot. I expect that another few months of improvement in inflation, better GDP growth and stable monsoon will give RBI room to reduce the Policy rates and basis the current trends I don’t expect any further increase in policy rates in the next monetary policy.”

It's three to tango! Stocks that can return more than 60% in a year

Market outlook is uncertain, thanks to the coming general elections. How the markets will behave in the run-up, experts are starkly divided; with some betting on a surge and others predicting otherwise.

Here are three stocks that brokers say can return more than 60% in the next nine to 12 months:

DLF

Religare maintains 'buy' rating on the stock after the company achieved the debt target, which is a key positive.

The risk-reward ratio also remains favourable given the improved balance sheet and rental assets.

Adani Enterprises

The stock after giving a breakout in December completed a pullback in January and February and is on the verge of resuming its uptrend. Mitesh Thacker advises investors to accumulate the stock with a stop loss of Rs 220 and look for a target of Rs 400-420.

Delta Corporation

This stock has also has given a pullback to its breakout levels of around Rs 95 with last week's low at about Rs 97. Investors can look at accumulating the stock around Rs 100-102 mark.

The stock remains in a long term uptrend and Mitesh Thacker is of the view that the stock can test levels of Rs 170 to 180 in the next six to nine months. I would suggest accumulating with a stop below Rs 78.

Here's what experts say about how markets tune to the elections:

Rakesh Tarway, VP and Head of Equity Strategy, Equity and Derivative Products, Motilal Oswal Securities

"A hung Parliament would be a bad option for India as a country and market will not like Third Front as it brings political instability."

"Third front will not be a better option for political scenario. But too many aspirants for PM, will limit its success post poll."

Rajesh Sharma, Founder & Director, Capri Global Capital Ltd.

"Any further prolonging of this situation (on economic front) will certainly widen the gap between developed economies and Indian economy which is aspiring to become one of the largest economies of the world."

"Towards achieving this goal our IIP should grow in double digit and GDP growth should be at least around 8.5 per cent. This will not be possible with political situation of hung Parliament."

Siddharth Sedani, Vice President-PMS at Microsec Capital Ltd

"Although, we see few green shoots in the economy in last couple of months. Investor should utilize the opportunity to accumulate quality companies on dips ahead of elections due to volatility."

"Automobile, Export oriented companies and Infrastructure can be growth drivers in quarters to come."

Dolat Capital

"The elections will at least bring back some level of confidence back for key stakeholders, and then it is up to the actions of the new government; how much and how quickly we recover to the trend line growth."

Vikas Khemani, CEO, Edelweiss

"Most of the activity seems to be building around the belief in the political outcome. Some of the surveys have come out and incrementally there is a belief of a strong political sort of outcome that is getting built into the market albeit in a slow and steady manner."

Ambareesh Baliga, Managing Partner-Global Wealth Management, Edelweiss Financial Services

"We have been bullish on the market for a while, and talking about the pre-election rally."

"The pre-election rally that we all are waiting for should take us to new highs. I will not be surprised if we see levels of closer to about 6,500-plus in the next one and a half, or two months."

Source: http://articles.economictimes.indiatimes.com/2014-02-27/news/47740048_1_motilal-oswal-securities-rs-170-delta-corporation

US hedge fund Capri Capital plans to launch realty PE fund in India

US-based hedge fund Capri Capital Partnersplans to launch its first India-dedicated real estate private equity fund to raise about $400 million, two people familiar with the development said.

Capri Capital, which advises pension funds and institutional investors globally, has $3.7 billion assets under management.

It is looking to raise the fund through its India arm, Capri Global Capital, after the upcoming general elections. The offshore fund will focus on investing in affordable housingprojects across the country, the people quoted earlier said.

Quintin Primo III, chairman & CEO of Chicago-headquartered Capri Capital, refused to share details of the fund raising plan. He, however, said Capri Global Capital is working on the "right" investment strategy in India.

"We want to aggressively expand that platform. We hope to secure various sources of capital in the next 12 months including equity, debt, private equity format and also through joint ventures," he said. Capri Global Capital is a listed non-deposit accepting systemically important non-banking finance company (NBFCs-ND-SI) focused on wholesale, small and micro enterprise lending. Large global institutional investors, with few exceptions such as Blackstone Group, have been keeping away from the Indian real estate sector given the current scenario.

However, according to Primo, Indian real estate is throwing up good opportunities due to tough liquidity situation and Capri is aiming to tap this growth.

Source: http://articles.economictimes.indiatimes.com/2014-02-07/news/47126611_1_hedge-fund-equity-fund-offshore-fund

Capri Capital bets on India; plans dedicated realty fund

Large global institutional investors seem to have a developed a renewed interest for Indian realty. The latest in the list is Chicago-headquartered hedge-fund 'Capri Capital Partners' which has big plans for growing in country through its India arm - Capri Global Capital. Considering this, CNBC TV18's Manasvi Ghelani finds out what's attracting global investors to Indian realty at a time when domestic banks are shying away from exposing themselves to the sector.

With domestic investors and banks cautious of lending to the Indian real estate sector given the current economic scenario, foreign investors are coming to the rescue. So after Blackstone, its US based hedge fund Capri, which is now investing big in India through its arm - Capri Global Capital.

The company has recently signed a deal with real estate developer Monarch Universal Group to fund Rs 45 crore for two residential projects in Roadpali and Kalamboli in Mumbai.

Besides, in the last nine months Capri has invested a total of about Rs 200 crore for partnerships with Marvel Group in Pune, CHD Developers in Delhi and Ozone & Unishire Group in Bangalore.

Reports also suggest, Capri is planning to launch its first India-dedicated real estate private equity fund to raise about USD 400 million soon after the elections.

And the management says their strategy is already yielding positive returns.   

“The banks pulled back and that gave us the opportunities to step up so we had significant appointment of capital in the last 12 months. We have experienced very strong credit performance, in terms of delinquencies, they have been very low. We have been able to generate 20% of returns on monies we have let out in the market,” Quintin E Primo III, Chairman, Capri Global Capital says.

On the other hand this is good news for cash-strapped Indian developers as well.

Sanjay Dutt, Executive MD - South Asia, Cushman & Wakefield says: “It is important that you to de-risk your projects and basically have equity partnership and therefore not necessarily invest too much money from your pocket. So that has resulted in a lot of play between developers and PE firms.”

But despite this renewed interest from global investors, analysts say more needs to be done to help developers and all eyes are now on the new government's policies post elections to see if it can get in more FDI for the realty sector as well as push through REITS.

Source: http://www.moneycontrol.com/news/cnbc-tv18-comments/capri-capital-betsindia-plans-dedicated-realty-fund_1039653.html?utm_source=ref_article

Capri Global Capital Limited (CGCL) funds Monarch Universal Group projects for INR 45 crore

• CGCL is participating in construction finance for 2 Projects being developed by  Monarch Universal Group in Kalamboli, Navi Mumbai
• Capri Global to continue focusing on the residential real estate projects

Capri Global Capital Ltd (CGCL), one of the country’s leading non-deposits accepting, non-banking finance company, headquartered in Mumbai has entered into a deal with Monarch Universal Group to fund two residential developments in Roadpali, Kalamboli. Monarch Universal Group is a well-known developer with a track record of delivering residential and commercial projects primarily in Navi Mumbai area.

Mr. Ramesh Kelkar, Head of Risk, Wholesale Lending, Capri Global Capital Limited said, “This transaction is a testimony to the fact that residential developments on the outskirts of Mumbai where there is an emerging market for quality real estate and will continue to attract interest of financial institutions. Monarch Universal Group is a well-respected group of Navi Mumbai and has delivered several large residential projects in the past. We are excited to support Monarch Universal Group for these projects and are actively looking at similar deployment opportunities across India over the next few quarters”.

While the demand in 2013 for residential real estate was subdued, in 2014, CGCL believes, in the mid-income housing segment, the market will continue to remain attractive, for the products which are realistically priced. The Company intends to focus primarily on such projects to provide finance, Mr. Kelkar added.