Shares of this NBFC stock under the ‘small-cap’ category rose around 5 percent in Wednesday’s trading session after the company published key business updates for the financial quarter ended September 2023. In the last six months, the company’s stock has gained close to 80 percent.
With a market capitalization of Rs 2,623.26 crores, the stocks of Ugro Capital Limited opened their trading hour on Wednesday at Rs 294.30 and currently trades at Rs 283.60, gaining approximately 5 percent as compared to the previous closing levels of Rs 272.45 apiece.
Such stock price movements were observed after the company, in a filing with the Bombay Stock Exchange (BSE) dated 10th October 2023, provided some key business updates for the quarter ended September 2023, i.e., Q2FY24.
The overall Assets Under Management (AUM) rose 73 percent YoY from Rs 4,375 crores during Q2FY23 to Rs 7,590 crores during Q2FY24. Moreover, the net loan origination of the NBFC company, during the same time horizon, increased by 34 percent, i.e., from Rs 1,100 crores to Rs 1,470 crores.
In addition to the above, the collection efficiency of the company has improved 80bps sequentially from 96.8 percent during Q1FY24 to 97.6 percent during Q2FY24.
Coming onto the financials, the company’s performance, during the recent years, has shown positive movements with the operating revenues increasing from Rs 306.31 crores during FY21-22 to Rs 656.45 crores during FY22-23. Moreover, the after-tax profit figures also increased from Rs 14.55 crores to Rs 39.78 crores keeping the timeframe the same.
As a result of the above, the basic profitability ratios of the company took an upward shift with the return on equity (RoE) increasing from 1.53 percent during FY21-22 to 4.10 percent during FY22-23, and, the return on capital employed (RoCE) shifting from 7.02 percent to 10.93 percent.
As per the shareholding pattern data available for the quarter ended June 2023, a majority of the company’s stake is held by Retail Investors holding a 70.36 percent stake. Moreover, the Foreign Institutional Investors (FIIs) hold a considerable stake of 21.99 percent in the company.
Ugro Capital Limited is associated with the business of lending especially involving deals in financing small and medium enterprise clients including sectors such as Chemicals, Education, Healthcare, Auto Components, and many more.
Written by Amit Madnani
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