Ugro Capital Limited (UGROCAP) AI Stock Analysis

• Market Cap: ₹18.62B
• Dividend Yield: N/A
• Average Volume (3M): 19.04K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.01
• Revenue Growth: 34.09%
• EPS Growth: 17.49%
• Country: IN
• Employees: 1,678
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 3.61
• Shares Outstanding: 116,755,455
• 10 Day Avg. Volume: 15,056
• 30 Day Avg. Volume: 19,036
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹174.00
• Price Target Upside: 5.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ₹174.00 ▲(5.10% Upside)

Ugro Capital Limited's overall stock score reflects a combination of mixed financial performance and technical analysis. The company's high leverage and negative cash flows present significant risks, while the technical indicators show a bearish trend with some potential for upward momentum. The valuation appears reasonable, but the lack of a dividend yield may deter income-focused investors.

Ugro Capital Limited Business Overview & Revenue Model

Company Description

UGRO Capital Limited, a non-banking financial company, engages in the lending business. It provides business loans to healthcare, education, chemicals, food processing/FMCG, hospitality, electrical equipment and components, auto components, and light engineering sectors. The company was formerly known as Chokhani Securities Limited and changed its name to Ugro Capital Limited in September 2018. UGRO Capital Limited was incorporated in 1993 and is based in Mumbai, India.

How the Company Makes Money

Ugro Capital generates revenue primarily through interest income from loans disbursed to SMEs. The company employs a data-driven approach to assess credit risk and determine loan eligibility, allowing it to offer competitive interest rates while managing risk effectively. Key revenue streams include interest payments from borrowers, processing fees, and service charges associated with loan origination and management. Additionally, Ugro Capital may engage in partnerships with financial institutions and technology providers to expand its reach and enhance its lending capabilities, contributing to its overall earnings.

Ugro Capital Limited Financial Statement Overview

Summary

Ugro Capital Limited's financial performance is mixed. Strong gross profit margins are overshadowed by declining revenue growth and high leverage. Cash flow challenges with negative operating and free cash flows indicate potential liquidity issues.

Income Statement

Ugro Capital Limited's income statement shows a mixed performance. The company has a high gross profit margin of 100% in the latest year, indicating strong revenue retention. However, the net profit margin is moderate at 22.45%, and the EBIT and EBITDA margins are unusually high due to the nature of financial services, which may not accurately reflect operational efficiency. The revenue growth rate is concerning, with a significant decline of 48.36% in the latest year, indicating potential challenges in revenue generation.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.37, suggesting significant leverage and potential financial risk. Return on equity is relatively low at 7.03%, indicating modest profitability relative to shareholder equity. The equity ratio stands at 22.32%, showing a moderate level of equity financing compared to total assets. Overall, the balance sheet indicates a leveraged position with moderate returns.

Cash Flow

Cash flow analysis highlights significant challenges, with negative operating and free cash flows. The free cash flow growth rate is negative, indicating deteriorating cash generation capabilities. The operating cash flow to net income ratio is negative, suggesting cash flow issues relative to reported earnings. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow is just covering net income, but the overall cash flow position is weak.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.88B	6.41B	5.02B	7.08B	2.68B	1.36B
Gross Profit	5.22B	6.41B	683.93M	1.01B	618.12M	514.42M
EBITDA	3.00B	8.78B	741.57M	2.19B	1.70B	684.25M
Net Income	1.44B	1.44B	397.76M	1.19B	145.51M	287.27M
Balance Sheet
Total Assets	91.68B	91.68B	43.06B	62.80B	28.54B	17.51B
Cash, Cash Equivalents and Short-Term Investments	5.53B	5.53B	2.12B	4.26B	1.60B	3.50B
Total Debt	69.04B	69.04B	31.49B	46.53B	18.02B	7.66B
Total Liabilities	71.22B	71.22B	33.22B	48.42B	18.88B	7.98B
Stockholders Equity	20.46B	20.46B	9.84B	14.38B	9.67B	9.52B
Cash Flow
Free Cash Flow	0.00	-25.00B	-12.61B	-15.75B	-11.46B	-3.59B
Operating Cash Flow	0.00	-24.74B	-12.20B	-15.35B	-11.32B	-3.47B
Investing Cash Flow	0.00	-799.24M	-845.42M	-2.30B	413.80M	-459.17M
Financing Cash Flow	0.00	26.55B	12.79B	18.14B	10.33B	5.08B

Ugro Capital Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 165.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UGROCAP, the sentiment is Negative. The current price of 165.55 is below the 20-day moving average (MA) of 172.94, below the 50-day MA of 171.37, and below the 200-day MA of 181.67, indicating a bearish trend. The MACD of -2.20 indicates Positive momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 15.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:UGROCAP.

Ugro Capital Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TFCILTD	73 Outperform	₹33.50B	30.74	8.53%	0.83%	7.91%	16.20%
ARMANFIN	57 Neutral	₹15.52B	249.94	5.96%	―	0.02%	-96.51%
MUTHOOTMF	56 Neutral	₹27.42B	5.08	-8.45%	―	―	―
UGROCAP	53 Neutral	₹18.62B	10.32	―	―	34.09%	17.49%
SPANDANA	48 Neutral	₹22.19B	-1.29	-39.31%	―	-26.77%	-431.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Ugro Capital Limited Corporate Events

Ugro Capital’s Credit Ratings Affirmed with Positive Outlook

Ugro Capital Limited has announced that India Ratings & Research Pvt. Ltd has affirmed and assigned credit ratings to several of its financial instruments, including non-convertible debentures, bank loans, and subordinated debt, all with a rating of IND A+ and a positive outlook. This affirmation and assignment of ratings reflect the company’s stable financial position and potential for growth, which could positively impact its operations and reassure stakeholders about its creditworthiness.

Ugro Capital Raises ₹400 Crores Through Successful Rights Issue

Ugro Capital Limited has announced the successful allotment of equity shares through a Rights Issue, raising ₹400 Crores. This move increases the company’s paid-up equity share capital significantly, enhancing its financial capacity to support its operations and strategic goals. The Rights Issue was conducted in compliance with SEBI regulations, and the new shares were allotted at a premium, reflecting investor confidence in the company’s prospects.