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Capital First

BSE:532938
Snowflake Description

High growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
532938
BSE
₹58B
Market Cap
  1. Home
  2. IN
  3. Diversified Financials
Company description

As of December 18, 2018, Capital First Limited was acquired by IDFC Bank Limited. The last earnings update was 69 days ago. More info.


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532938 Share Price and Events
7 Day Returns
0%
BSE:532938
0.9%
IN Consumer Finance
0.7%
IN Market
1 Year Returns
-19.3%
BSE:532938
8.3%
IN Consumer Finance
-8.1%
IN Market
532938 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Capital First (532938) 0% 10.1% 23% -19.3% 45.5% 310.8%
IN Consumer Finance 0.9% 3.7% 13.9% 8.3% 125.5% 313.2%
IN Market 0.7% -0.1% 2.1% -8.1% 31.9% 82%
1 Year Return vs Industry and Market
  • 532938 underperformed the Consumer Finance industry which returned 8.3% over the past year.
  • 532938 underperformed the Market in India which returned -8.1% over the past year.
Price Volatility
532938
Industry
5yr Volatility vs Market

Value

 Is Capital First undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Capital First to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Capital First.

BSE:532938 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= ₹337.03 * 16.7%
₹56.26
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. ₹337.03
Discount Rate (Cost of Equity) See below 13.5%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:532938
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.7%
Equity Risk Premium S&P Global 7.3%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.35
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.35 (1 + (1- 35%) (421.79%))
0.566
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.73% + (0.8 * 7.27%)
13.55%

Discounted Cash Flow Calculation for BSE:532938 using Excess Returns Model Model

The calculations below outline how an intrinsic value for Capital First is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

BSE:532938 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (16.7% – 13.55%) * ₹337.03)
₹10.61
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ₹10.61 / (13.55% - 7.73%)
₹182.36
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ₹337.03 + ₹182.36
₹519.39
BSE:532938 Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹519.39
Current discount Discount to share price of ₹587.50
= -1 x (₹587.50 - ₹519.39) / ₹519.39
-13.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Capital First is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Capital First's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Capital First's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:532938 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in INR ₹44.31
BSE:532938 Share Price ** BSE (2018-12-27) in INR ₹587.5
India Consumer Finance Industry PE Ratio Median Figure of 72 Publicly-Listed Consumer Finance Companies 18.34x
India Market PE Ratio Median Figure of 2,727 Publicly-Listed Companies 17.14x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Capital First.

BSE:532938 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532938 Share Price ÷ EPS (both in INR)

= 587.5 ÷ 44.31

13.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Capital First is good value based on earnings compared to the IN Consumer Finance industry average.
  • Capital First is good value based on earnings compared to the India market.
Price based on expected Growth
Does Capital First's expected growth come at a high price?
Raw Data
BSE:532938 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
30.6%per year
India Consumer Finance Industry PEG Ratio Median Figure of 15 Publicly-Listed Consumer Finance Companies 0.84x
India Market PEG Ratio Median Figure of 638 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

BSE:532938 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.26x ÷ 30.6%

0.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Capital First is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Capital First's assets?
Raw Data
BSE:532938 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in INR ₹295.57
BSE:532938 Share Price * BSE (2018-12-27) in INR ₹587.5
India Consumer Finance Industry PB Ratio Median Figure of 79 Publicly-Listed Consumer Finance Companies 1.05x
India Market PB Ratio Median Figure of 3,552 Publicly-Listed Companies 1.19x
BSE:532938 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532938 Share Price ÷ Book Value per Share (both in INR)

= 587.5 ÷ 295.57

1.99x

* Primary Listing of Capital First.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Capital First is overvalued based on assets compared to the IN Consumer Finance industry average.
X
Value checks
We assess Capital First's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Capital First has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Capital First expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
30.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Capital First expected to grow at an attractive rate?
  • Capital First's earnings growth is expected to exceed the low risk savings rate of 7.7%.
Growth vs Market Checks
  • Capital First's earnings growth is expected to exceed the India market average.
  • Capital First's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
BSE:532938 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:532938 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 30.6%
BSE:532938 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 29.2%
India Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 19.4%
India Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 18.6%
India Market Earnings Growth Rate Market Cap Weighted Average 19%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:532938 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:532938 Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-03-31 43,657 6,248 3
2019-03-31 32,849 4,456 5
BSE:532938 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-09-30 29,106 4,383
2018-06-30 26,962 3,645
2018-03-31 25,414 -76,501 3,284
2017-12-31 22,845 3,085
2017-09-30 20,729 2,834
2017-06-30 18,979 2,578
2017-03-31 17,296 -18,175 2,401
2016-12-31 13,662 2,170
2016-09-30 12,626 2,001
2016-06-30 11,520 1,836
2016-03-31 10,598 -34,869 1,676
2015-12-31 7,274 1,525

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Capital First's earnings are expected to grow significantly at over 20% yearly.
  • Capital First's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:532938 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Capital First Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532938 Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-03-31 63.22 69.00 56.60 4.00
2019-03-31 44.87 47.09 43.00 4.00
BSE:532938 Past Financials Data
Date (Data in INR Millions) EPS *
2018-09-30 44.31
2018-06-30 36.98
2018-03-31 33.43
2017-12-31 31.54
2017-09-30 29.37
2017-06-30 27.12
2017-03-31 25.68
2016-12-31 23.59
2016-09-30 21.90
2016-06-30 20.13
2016-03-31 18.39
2015-12-31 17.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Capital First will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Capital First's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Capital First has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Capital First performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Capital First's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Capital First has delivered over 20% year on year earnings growth in the past 5 years.
  • Capital First's 1-year earnings growth exceeds its 5-year average (54.7% vs 37.6%)
  • Capital First's earnings growth has exceeded the IN Consumer Finance industry average in the past year (54.7% vs 20.9%).
Earnings and Revenue History
Capital First's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Capital First Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:532938 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 29,106.17 4,383.32 10,257.76
2018-06-30 26,962.14 3,644.98 9,895.89
2018-03-31 25,413.89 3,283.53 9,414.01
2017-12-31 22,845.12 3,085.26 7,504.37
2017-09-30 20,728.83 2,833.56 7,224.53
2017-06-30 18,978.91 2,577.83 7,033.68
2017-03-31 17,296.43 2,400.54 6,906.67
2016-12-31 13,661.86 2,169.65 4,914.46
2016-09-30 12,625.94 2,001.36 4,691.40
2016-06-30 11,520.48 1,836.00 4,444.60
2016-03-31 10,597.68 1,675.57 4,187.89
2015-12-31 7,273.94 1,525.33 2,644.92
2015-09-30 6,722.04 1,379.19 2,565.03
2015-06-30 6,365.80 1,239.30 2,528.67
2015-03-31 6,998.74 1,116.59 2,221.30
2014-12-31 5,944.94 1,035.71 2,100.77
2014-09-30 5,281.00 858.05 2,029.58
2014-06-30 4,199.34 742.73 2,092.02
2014-03-31 3,874.70 589.51 2,038.97
2013-12-31 4,020.25 450.02 1,834.97
2013-09-30 3,822.12 433.91 1,905.45
2013-06-30 3,541.95 492.88 1,915.01
2013-03-31 3,525.46 697.74 1,821.38
2012-12-31 4,421.39 816.38 1,816.12
2012-09-30 4,353.43 998.08 1,684.33
2012-06-30 3,502.58 1,099.79 1,190.03
2012-03-31 4,285.17 1,058.31 1,258.12

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Capital First has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Capital First used its assets less efficiently than the IN Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if Capital First improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Capital First's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Capital First has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Capital First's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Capital First's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Capital First is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Capital First's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Capital First's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Capital First Company Filings, last reported 3 months ago.

BSE:532938 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 29,277.23 245,501.46 9,155.36
2018-06-30 26,175.64 217,239.45 14,263.49
2018-03-31 26,175.64 217,239.45 14,263.49
2017-12-31 24,203.44 184,457.99 14,124.62
2017-09-30 24,203.44 184,457.99 14,124.62
2017-06-30 23,038.41 141,104.10 15,936.28
2017-03-31 23,038.41 141,104.10 15,936.28
2016-12-31 18,277.42 147,681.03 22,334.21
2016-09-30 18,277.42 147,681.03 22,334.21
2016-06-30 17,035.10 119,548.96 11,127.05
2016-03-31 17,035.10 119,548.96 11,127.05
2015-12-31 16,461.82 104,890.84 9,942.68
2015-09-30 16,461.82 104,890.84 9,942.68
2015-06-30 15,737.66 84,750.54 10,570.58
2015-03-31 15,737.66 84,750.54 10,570.58
2014-12-31 12,651.42 92,746.00 11,387.59
2014-09-30 12,329.77 85,389.21 9,096.42
2014-06-30 11,718.52 85,053.64 20,130.75
2014-03-31 11,718.52 85,053.64 20,130.75
2013-12-31
2013-09-30 9,702.35 78,181.41 19,915.76
2013-06-30 9,607.13 62,474.65 11,906.03
2013-03-31 9,607.13 62,474.65 11,906.03
2012-12-31 9,794.28 49,084.81 9,610.78
2012-09-30 9,794.28 49,084.81 9,610.78
2012-06-30 8,315.72 38,725.71 5,091.97
2012-03-31 8,315.72 45,888.83 5,091.97
  • Capital First's level of debt (838.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (805.3% vs 838.5% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on Capital First's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Capital First's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Capital First has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Capital First's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.48%
Current annual income from Capital First dividends. Estimated to be 0.69% next year.
If you bought ₹2,000 of Capital First shares you are expected to receive ₹10 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Capital First's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Capital First's dividend is below the markets top 25% of dividend payers in India (1.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:532938 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
India Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 28 Stocks 0.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1392 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.2%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:532938 Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2020-03-31 5.60 2.00
2019-03-31 2.45 2.00
BSE:532938 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-06-08 2.800 0.526
2017-05-10 2.600 0.376
2016-05-13 2.400 0.376
2015-05-13 2.200 0.560
2015-03-24 2.000 0.485
2015-03-19 2.000 0.518
2014-05-22 2.000 0.672
2014-05-08 2.000 1.062
2013-05-27 1.800 1.184
2012-09-25 1.500 0.893
2011-06-30 1.500 1.068
2011-05-12 1.500 1.099
2010-08-09 1.000 0.530

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Capital First has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Capital First only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Capital First's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (15.8x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Capital First's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Capital First afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Capital First has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Capital First's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
V. Vaidyanathan
COMPENSATION ₹0
AGE 50
TENURE AS CEO 8.4 years
CEO Bio

Mr. V. Vaidyanathan, MBA, AMP (HBS), has been the Managing Director, CEO and Director at IDFC Bank Ltd. since December 18, 2018. Mr. Vaidyanathan has been an Executive Chairman and Managing Director of Capital First Limited (CFL) since September 28, 2012 and August 10, 2010 respectively. Mr. Vaidyanathan formed Capital First by way of a Management Buyout of an existing NBFC, by securing a USD 150 million equity backing from Warburg Pincus in 2012. Warburg Pincus is a large Global Private Equity player with funds of over US$ 40 billion. This is India's largest Management Buyout of a listed company and is one of his significant professional achievements. Post the transaction, he holds shares and options totaling 14% of the company on a fully diluted basis through personal holdings and related entities. In 2010, CFL was a Mumbai focused wholesale lending NBFC with Equity Capital of Rs. 700 Crores with loan assets of Rs. 935 Crores. He has transformed the company into a large NBFC specializing in MSME and Retail financing, has acquired 1 million customers and has grown assets to Rs. 11047 Crores (Sep '14) and built a capital base of Rs. 1898 Crores. The company now has over 1000 employees, in 222 locations in India. Under his leadership, the company's long term credit rating has been re-rated thrice from A+ to AA+. He believes that financing India's 30 million MSMEs and India's emerging middle class, with a differentiated model based on new technology platforms, offers a unique opportunity in India. He joined ICICI Group in early 2000 when it still was a Domestic Financial Institution and was one of the Senior Management members responsible for transition of ICICI to a Universal Bank from a DFI. He launched the Retail Banking Businesses for ICICI in 2000 and built it to 1400 ICICI Bank branches in 800 cities, 25 million customers, a vast CASA and retail deposit base, with branch, internet, digital and new-age banking. He built a retail loan book of over 1,35,000 Crores in Mortgages, Auto loans, Commercial Vehicles, Credit Cards and Personal Loans. He also built the ICICI Bank's SME business and managed the Rural Banking Business. These businesses helped the conversion of the institution to a universal bank renowned for retail banking. He was appointed as MD and CEO of ICICI Personal Financial Services at 32 and Executive Director on the Board of ICICI Bank at the age of 38 and became the MD and CEO of ICICI Prudential Life Insurance Co at 41. He was also the Chairman of ICICI Home Finance Co. Ltd and served on the Board of ICICI Lombard General Insurance Company and CIBIL, India's first Credit Bureau. He started his career with Citibank India in 1990 and worked there till 2000 in retail banking. He is a recipient of many domestic and international awards including "Best Retail bank in Asia 2001", "Excellence in Retail Banking Award" 2002, "Best Retail Bank in India 2003, 2004 and 2005 from the Asian Banker", "Most Innovative Bank, 2007", "Leaders under 40" from Business Today in 2009, "Young Entrepreneur Award, 2012", "Greatest Corporate Leaders of India, 2014", and was nominated "Retail Banker of the Year" by EFMA Europe for 2008 and 2009. He is an alumnus of Birla Institute of Technology and Harvard Business School. He is a regular speaker in Indian and international forums on Financial and Banking matters.

CEO Compensation
  • V.'s compensation has been consistent with company performance over the past year.
  • V.'s remuneration is lower than average for companies of similar size in India.
Management Team

V. Vaidyanathan

TITLE
Executive Chairman & MD
AGE
50
TENURE
8.4 yrs

Pankaj Sanklecha

TITLE
CFO & Head of Corporate Centre
COMPENSATION
₹24M
AGE
47
TENURE
6.2 yrs

Satish Gaikwad

TITLE
Head of Legal & Compliance and Company Secretary
COMPENSATION
₹8M
AGE
38

Apul Nayyar

TITLE
Executive Director
AGE
46

Nihal Desai

TITLE
Chief Risk Officer & Executive Director
AGE
50

Adrian Andrade

TITLE
Head of Human Resource & Administration

Saptarshi Bapari

TITLE
Head of Investor Relations

Pradeep Natarajan

TITLE
Head of Store Distribution

Prashant Shetty

TITLE
Senior Vice President of Finance

Shikha Kamdar

TITLE
Business Head of Consumer Durable & X-Sell Loans
Board of Directors Tenure

Average tenure and age of the Capital First board of directors in years:

5.1
Average Tenure
54.5
Average Age
  • The tenure for the Capital First board of directors is about average.
Board of Directors

V. Vaidyanathan

TITLE
Executive Chairman & MD
AGE
50
TENURE
6.3 yrs

Apul Nayyar

TITLE
Executive Director
AGE
46
TENURE
2.8 yrs

Nihal Desai

TITLE
Chief Risk Officer & Executive Director
AGE
50
TENURE
2.8 yrs

Naresh Singhal

TITLE
Independent Director
COMPENSATION
₹3M
AGE
82
TENURE
8.3 yrs

Hemang Raja

TITLE
Independent Director
COMPENSATION
₹3M
AGE
59
TENURE
5.9 yrs

Brinda Jagirdar

TITLE
Independent Director
COMPENSATION
₹2M
AGE
65
TENURE
4.3 yrs

Dinesh Kanabar

TITLE
Independent Director
COMPENSATION
₹2M
AGE
59
TENURE
4 yrs

Vishal Mahadevia

TITLE
Non-Executive Director
AGE
45
TENURE
6.3 yrs

Swaminathan Sundara Mittur

TITLE
Independent Director
COMPENSATION
₹3M
AGE
68
TENURE
5.9 yrs

Narendra Ostawal

TITLE
Non Executive Director
AGE
40
TENURE
4 yrs
Who owns this company?
Recent Insider Trading
  • Capital First insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
04. Dec 18 Sell Dayside Investments Ltd Company 29. Nov 18 04. Dec 18 -850,000 ₹532.35 ₹-448,941,412
20. Oct 18 Sell E. Narayanan Individual 08. Oct 18 11. Oct 18 -4,247 ₹475.52 ₹-1,948,440
12. Oct 18 Sell Apul Nayyar Individual 09. Oct 18 09. Oct 18 -4,712 ₹452.02 ₹-2,129,918
28. Jun 18 Sell Rukmani Social Welfare Trust., Endowment Arm Company 08. Jun 18 27. Jun 18 -3,300 ₹580.98 ₹-1,850,499
28. Jun 18 Sell Rukmani Social Welfare Trust., Endowment Arm Company 08. Jun 18 27. Jun 18 -3,300 ₹580.98 ₹-1,850,500
04. Apr 18 Sell Reshma Narang Individual 03. Jan 18 27. Mar 18 -1,500 ₹735.93 ₹-1,056,320
18. Jan 18 Sell Mahesh Dholiya Individual 16. Jan 18 16. Jan 18 -2,000 ₹817.22 ₹-1,634,431
09. Jan 18 Buy Bhakti Patil Individual 08. Jan 18 08. Jan 18 2,600 ₹768.79 ₹1,998,861
05. Jan 18 Sell Shakil Khan Individual 22. Dec 17 03. Jan 18 -4,000 ₹726.67 ₹-2,883,955
X
Management checks
We assess Capital First's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Capital First has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

How Do Analysts See Capital First Limited (BOM:532938) Performing Over The Next Few Years?

The latest earnings release Capital First Limited's (BOM:532938) announced in March 2018a … showed

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Company Info

Map
Description

As of December 18, 2018, Capital First Limited was acquired by IDFC Bank Limited. Capital First Limited engages in the non-banking financial service business in India. The company offers loan products, such as loan against property, two-wheeler, pre-owned, business, consumer durable, personal, and home loans. It also provides easy buy EMI cards. The company serves customers in micro, small, and medium enterprises, as well as consumers. The company was formerly known as Future Capital Holdings Limited and changed its name to Capital First Limited in November 2012. Capital First Limited was incorporated in 2005 and is based in Mumbai, India.

Details
Name: Capital First Limited
532938
Exchange: BSE
Founded: 2005
₹58,205,148,975
99,072,594
Website: http://www.capitalfirst.com
Address: Capital First Limited
One Indiabulls Centre,
Tower 2A & 2B,
Mumbai,
Maharashtra, 400013,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532938 Equity Shares Mumbai Stock Exchange IN INR 01. Feb 2008
NSEI CAPF Equity Shares National Stock Exchange of India IN INR 01. Feb 2008
Number of employees
Current staff
Staff numbers
0
Capital First employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/03 13:09
End of day share price update: 2018/12/27 00:00
Last estimates confirmation: 2018/11/20
Last earnings filing: 2018/10/26
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.