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Illustration: Binay Sinha
Share price of Ugro Capital soared up to 7.92 per cent at Rs 258 per share intraday on the BSE. This came after non banking financial company announced that the company has reached a total asset under management (AUM) of Rs 10,200 crore as of September 2024, growing from Rs 2,970 crore in March 2022.
The company said in its quarterly earnings update for the July-September quarter that it achieved a record quarterly net loan origination of over Rs 1,970 crore in Q2 FY25, up from Rs 1,146 crore in Q1 FY25. The Micro Enterprises Loan segment also hit a high of Rs 450 crore in Q2 FY25, compared to Rs 209 crore in Q1 FY25, reflecting the expansion of its branch network to 210 locations as of September 2024.
Micro Enterprises loans contributed twenty-three out of every hundred in net origination, increasing from thirteen out of every hundred a year ago, with their share of Assets Under Management (AUM) rising to about eleven out of every hundred, the company said in a statement on Thursday.
The company recorded a co-lending volume of over Rs 600 crore in Q2 FY25, up from Rs 337 crore in Q1 FY25, with off-book AUM making up about forty-four out of every hundred of the total.
UGRO also mobilised over Rs 1,100 crore in borrowings during the quarter, compared to Rs 375 crore in Q1 FY25. Its total liabilities, excluding Direct Assignment, stood at over Rs 5,300 crore as of September 2024, with bank borrowings accounting for roughly forty-five out of every hundred and capital markets for thirty-one out of every hundred.
Further the company disclosed it has received a ratings upgrade from India Ratings, which has upgraded its long-term rating to ‘IND A+/Stable’ and our short-term rating to ‘IND A1+’.
Ugro Capital share price history
Ugro Capital share price has underperformed the market as it declined 7.2 per cent year to date, while slipping 12.2 per cent in the last one year. In comparison BSE Sensex has risen 12.8 per cent year to date and 22.7 per cent in a year.
The company has a total market capitalization of Rs 2,346.68 crore. Its shares are trading at a price to earnings multiple of 17.84 times at an earning per share of Rs 13.40.
At 11:27 AM, the stock price of the company advanced by 1.70 per cent at Rs 614.15 a piece on the BSE. By comparison, the BSE’s Sensex was down 0.32 per cent to 81,351.75 level.
UGRO Capital Limited (formerly Chokhani Securities Limited) is a Non-Banking Financial Company (NBFC) engaged in lending, primarily focusing on financing the MSME sector. Its key segments include healthcare, education, chemicals, food processing/FMCG, hospitality, electrical equipment and components, auto components, and light engineering.
First Published: Oct 11 2024 | 11:34 AM IST
