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Capital First

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Capital First is a provider of financial service across

consumer and wholesale business, with aspiration of growth

into a significant financial conglomerate

Is systemically important NBFC with record of consistent

growth and Profitability.

Has comprehensive product suite to meet multiple financial

needs of consumers including consumer lending, corporate

lending and wealth management services

Overview

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Warburg Pincus acquired 40% stake from promoters & 26%

from Open offer and 100 crs infused by new CCPs (central

counter parties)

Total infusion via CCPs Rs 100Crs

Rs 50crs converted on 28-9-2012 and Rest 50crs suppose to

convert within 18 Months

It acquire 24.6% stake roughly around Rs 162 per share

Now New Promoter holding 70.28%

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Capital First, the erstwhile Future Capital Holdings,Incorporated in 2005 by Pantaloon Retail India

Has been Acquired by Warburg Pincus from Pantaloon Retail

India.

Management headed by Mr. V. Vaidyanathan

(Ex CEO & MD of ICICI Prudential Life)

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Shifting GearsMoving on higher growth trajectory

With Laidout strategy to expand retail and SME sectors

New Management team tap the vast opportunity in high growth

retail products like gold loan, LAP, and LAS etc

Total CAR @ 22.7 and tier-1 CAR @ 18.5

Macro enviornment likely to turn favourable as monetary easing

through rate cuts, boost demand

Management expects more than its loan books Rs 10,000 crs

(4400cr in Q2FY2013) in Next 3 years

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4400 Cr of which 58% in Retail & SME segment

2010 - 19%

2011 - 29%

201258% in Q2FY 2013.

Breakup of Loan Books

Mortage Loan74%

Gold Loan - 14%

Two Wheeler Loan3%

Others6%

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Robust Asset Quality

De-risking the portfolio by Expanding the Secured Retail Book

Stringent credit origination and Monitoring Process

Provisioning policy is more stringent then Regulatory requirement

(90 days NPA recognition norm proposed by RBI)

Gross NPA 0.11% and 0.01 Net NPA as on Q4FY2013 the lowest

compare to peer group

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Currently trading about 0.96x FY 2014E B.V which is

significant discount to its peers like Bajaj Finance ,

Mahindra Finance, Shriram City Union etc

The Valuation is Largely attributed to some legacy issues

(higher wholesale lending & lower ROE)

ROE expected to improve 13.1% in FY2012 to 17% in FY2015

Valuations

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Valuations

Source: Research Report

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Equity Shareholding Pattern

Corporate

Bodies

17%

Individuals

8%Others

4%

Promoters(warb

urg pincus-

cloverdel)70%

Financial

insititutions

0.4%

FIIs

1%

Promoters(warburg

pincus-cloverdel)

Financial insititutions

FIIs

Corporate Bodies

Individuals

Others

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Business Profile

ProductAs Per Tot

Bk(%)

Yeilds(%) Tenure Avg ticket size

Buildings 23.3 16-17 2-3 yrs 100-125crs

WholesaleCredit LAS 16.9 15 2.3-yrs

ICD's 2.1

SME LAP 41.5 14 6 yrs 0.8-1.0 cr

Retail Home loan 1.2 11.5 15 yrs 30 lakh

Gold loan 8.1 18 1-2 yrs 2-3 lakh

2 wheelerloans 1.7 24 1 yr Rs 30000

con durable 1.7 24 9 mntsvaries across

products

Others 3.5

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Application/Rejection Ratio in %

Source : Sharekhan Research Company

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Borrowing Mix

Bank Borrowings,

69%

NCDs, 9%

Equity, 17%

short termborrowings, 5%

Bank Borrowings

short term borrowingsNCDs

Equity

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Branch Distribution

In-store

branches

12%Broking

5%

Gold Loan

68%

Full service/LAP

15%

Gold LoanFull service/LAP

In-store branches

Broking

Business in 40 cities (Mainly tier-1 and tier-2 cities across india Total 202 branches

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Profit & loss statement

FINANCIALS

Key ratios

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Company likely to maintain 4.9-5% NIM

Company access around 70% borrow from Banks

90% Borrowing are long term in nature Company rating was upgraded by CARE to AA

85% of companys income is Fund Based & 15% was fee based

Key Points

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EPS 7.6 16.4 14.2 19.1

NIM(%) 4 4.3 5 5.1

P/E 25.1x 11.6x 13.3x 9.9x

P/BV 1.8x 1.5x 1.3x 1.2x

Key Ratios 2011 2012 2013 2014

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Thank you