Capri Global Capital gets corporate agency license to develop insurance platform; stock zooms over 13%

Shares of Capri Global Capital zoomed over 13 per cent in the morning deals on Tuesday (January 16), touching the day's high of Rs 924.2 apiece on BSE, which was Rs 15.75 away from its 52-week high of Rs 939.95 apiece.

The rally in the stock can be attributed to the company getting a corporate agency license from the insurance regulator, IRDAI, to develop an insurance platform.

As of 9:51 a.m., shares of the non-banking financial company (NBFC) traded 11.64 per cent, or Rs 94.8, higher on the BSE at Rs 909 apiece. The market capitalisation of the company at around the same time stood at Rs 18,746.76 crore.

"Capri Global Capital Limited (CGCL) received a composite corporate agency licence from the Insurance Regulatory and Development Authority of India (IRDAI) in December 2023 to distribute life, general, and health insurance products," the filing read.

The NBFC is planning to leverage technology to revolutionise the way insurance products and services are delivered to customers. It is planning to use data analytics, artificial intelligence, and blockchain to deliver insurance solutions, which will enable Capri Global Capital to automate claims processing and customer support services, thereby reducing the cost of operations while improving customer satisfaction.

The company's basic motto is to offer a customer-centric approach to insurance and will provide a wide range of insurance products and services through websites, apps, and call centres.

With this tech-centric focus, the company aims to leverage its robust active client base of 270K as of September 2023 to cross-sell insurance products. As per the filing, the rapidly increasing client relationships offer the company a captive base to improve insurance penetration, strengthen its fee income, and deliver better returns to its stakeholders.

Anil Singhvi's View on Capri Global Capital

Zee Business Managing Editor Anil Singhvi recommended the stock, emphasising that the company has grown consistently in the last five years. The company has created wealth with a 50 per cent compound annual growth rate (CAGR).

The stock breached the target price of Rs 860 given by Singhvi with a stop-loss of Rs 803.

Capri Global Capital share price: Past performance

In a year, the stock has gained over 27 per cent against the Nifty 50's rise of over 23 per cent.

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