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Ugro Capital Limited (IN:UGROCAP)
:UGROCAP
India Market
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Ugro Capital Limited (UGROCAP) AI Stock Analysis

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IN:UGROCAP

Ugro Capital Limited

(UGROCAP)

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Neutral 56 (OpenAI - 4o)
Rating:56Neutral
Price Target:
₹189.00
▲(4.30% Upside)
Ugro Capital's overall stock score is primarily influenced by its mixed financial performance, with significant challenges in cash flow and high leverage. The technical analysis suggests short-term bullish momentum, but potential bearish signals could lead to volatility. The stock's valuation appears attractive, with a low P/E ratio indicating potential undervaluation.

Ugro Capital Limited (UGROCAP) vs. iShares MSCI India ETF (INDA)

Ugro Capital Limited Business Overview & Revenue Model

Company DescriptionUGRO 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 MoneyUgro 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. The income statement shows strong gross margins but declining revenue growth, which is a concern. The balance sheet indicates high leverage, posing financial risks, while profitability metrics are moderate. Cash flow analysis reveals significant challenges with negative cash flows, highlighting potential liquidity issues.
Income Statement
45
Neutral
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
50
Neutral
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
30
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue13.44B14.42B10.82B6.84B3.12B1.53B
Gross Profit4.23B13.95B1.01B683.93M1.46B492.22M
EBITDA2.23B8.78B2.19B3.96B1.70B684.25M
Net Income1.48B1.44B1.19B397.76M145.51M287.27M
Balance Sheet
Total Assets0.0091.68B62.80B43.06B28.54B17.51B
Cash, Cash Equivalents and Short-Term Investments0.005.53B883.64M2.12B1.60B3.53B
Total Debt0.0069.04B46.53B31.49B18.31B7.88B
Total Liabilities-20.46B71.22B48.42B33.22B18.88B7.98B
Stockholders Equity20.46B20.46B14.38B9.84B9.67B9.52B
Cash Flow
Free Cash Flow0.00-25.00B-15.38B-12.61B-11.46B-3.59B
Operating Cash Flow0.00-24.74B-15.35B-12.20B-11.32B-3.47B
Investing Cash Flow0.00-799.24M-2.30B-845.42M413.80M-459.17M
Financing Cash Flow0.0026.55B18.14B12.79B10.23B5.08B

Ugro Capital Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price181.20
Price Trends
50DMA
173.09
Positive
100DMA
174.50
Positive
200DMA
179.52
Positive
Market Momentum
MACD
3.13
Negative
RSI
56.29
Neutral
STOCH
69.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UGROCAP, the sentiment is Positive. The current price of 181.2 is above the 20-day moving average (MA) of 174.88, above the 50-day MA of 173.09, and above the 200-day MA of 179.52, indicating a bullish trend. The MACD of 3.13 indicates Negative momentum. The RSI at 56.29 is Neutral, neither overbought nor oversold. The STOCH value of 69.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:UGROCAP.

Ugro Capital Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
₹34.69B31.830.80%7.91%16.20%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
61
Neutral
₹16.32B264.430.02%-96.51%
60
Neutral
₹28.58B5.26
56
Neutral
₹21.52B11.5734.09%17.49%
44
Neutral
₹22.67B26.37-26.77%-431.45%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:UGROCAP
Ugro Capital Limited
181.20
-63.49
-25.95%
IN:ARMANFIN
Arman Financial Services Limited
1,630.40
89.20
5.79%
IN:BFINVEST
BF Investment Limited
481.80
-177.70
-26.94%
IN:MUTHOOTMF
Muthoot Microfin Ltd
167.85
-55.05
-24.70%
IN:SPANDANA
Spandana Sphoorty Financial Ltd.
255.05
-257.07
-50.20%
IN:TFCILTD
Tourism Finance Corporation of India Limited
73.80
43.73
145.43%

Ugro Capital Limited Corporate Events

Ugro Capital’s Credit Ratings Affirmed with Positive Outlook
Aug 23, 2025

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
Jun 24, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 02, 2025