Shares of a small-cap Non-Banking Financial Company (NBFC) gained nearly 8% on Tuesday’s early trades after a company co-owned by ace investor Ashish Kacholia bought a stake in it. Its shares reached an intraday high of ₹ 236.75 apiece against a previous close of ₹ 219.50 apiece on the National Stock Exchange (NSE).
As per the shareholding pattern of the company for the April to June quarter (Q1FY24), domestic investor Suryavanshi Commotrade Pvt, co-owned by large investor Ashish Kacholia, bought 1.56% stake or 14,45,936 shares of Ugro Capital Ltd.
However, its name does not appear in the list of shareholders who hold more than a 1% stake in the company as of the previous quarter, indicating that it might have bought a fresh stake in the company.
Ugro Capital is a technology-focused (data-centric & technology-enabled approach), small business lending platform. The company is focused on addressing the capital needs of small businesses operating in select sectors by providing customized loan solutions.
With a market capitalization of ₹ 2,002 crores, Ugro Capital is a small-cap company. It has a low return on equity of 4.08% and its shares were trading at a price-to-earnings ratio (P/E) of 38.77, which is higher than the industry P/E of 23.39, indicating that the stock might be overvalued as compared to its peers.
Retail investors hold an 88.16% stake in the company, followed by foreign institutions with 6.95%, promoters with 2.87% and other domestic institutions with a 2.02% stake in the company.
Written by Simran Bafna
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