Ugro Capital Limited (UGROCAP) AI Stock Analysis

• Market Cap: ₹20.56B
• Dividend Yield: N/A
• Average Volume (3M): 20.96K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.12
• Revenue Growth: 33.99%
• EPS Growth: 11.65%
• Country: IN
• Employees: 1,678
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 3.79
• Shares Outstanding: 116,812,280
• 10 Day Avg. Volume: 15,127
• 30 Day Avg. Volume: 20,963
• PEG Ratio: 0.67
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 1.15
• P/FCF Ratio: -0.66
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: ₹188.00 ▲(9.94% Upside)

Ugro Capital Limited's overall stock score is primarily influenced by its financial performance, which shows strong gross margins but significant challenges in revenue growth and cash flow management. The technical analysis indicates a positive trend, but with potential bearish momentum. The valuation suggests the stock is reasonably priced. The absence of earnings call and corporate events data means these components do not impact the score.

Positive Factors

Business Model Strength

The fintech-driven model enhances efficiency and customer experience, providing a competitive edge in the SME lending market.

Revenue Streams

Diverse revenue streams from interest and fees provide stable income, supporting financial resilience and growth potential.

Market Position

Targeting underserved SMEs positions Ugro Capital to capture market share in a growing sector, driving long-term growth.

Negative Factors

High Leverage

High leverage increases financial risk, potentially impacting the company's ability to manage debt and finance future growth.

Revenue Growth Challenges

Declining revenue growth indicates potential difficulties in expanding market reach and sustaining business operations.

Cash Flow Issues

Negative cash flows suggest liquidity issues, limiting the company's ability to invest in growth and manage financial obligations.

Ugro Capital Limited Business Overview & Revenue Model

Company Description

Ugro Capital Limited (UGROCAP) is a financial services company based in India that focuses on providing tailored lending solutions to small and medium-sized enterprises (SMEs) across various sectors. The company leverages technology and data analytics to offer a range of products, including term loans, working capital loans, and other financial services designed to meet the unique needs of its clients, thereby fostering growth and expansion in the SME segment.

How the Company Makes Money

Ugro Capital generates revenue primarily through interest income earned on the loans it disburses to SMEs. The company's revenue model is based on a combination of interest rates charged on loans, processing fees, and other service fees associated with its lending products. Key revenue streams include the issuance of term loans and working capital loans, where Ugro Capital typically charges a competitive interest rate that reflects the risk profile of the borrower. Additionally, the company may earn income from partnerships with fintech platforms and other financial institutions that facilitate loan origination and customer acquisition. Factors contributing to Ugro Capital's earnings include its data-driven approach to credit assessment, which allows for efficient risk management and competitive pricing, as well as a growing market demand for SME financing solutions in India.

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 concerning. 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

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 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.45B	9.64B	7.07B	4.88B	2.68B	1.33B
Gross Profit	1.34B	1.29B	995.24M	678.77M	624.11M	492.22M
EBITDA	2.46B	2.62B	2.19B	1.07B	348.23M	257.76M
Net Income	1.48B	1.44B	1.19B	397.76M	145.51M	287.27M
Balance Sheet
Total Assets	0.00	91.68B	62.80B	43.06B	28.54B	17.51B
Cash, Cash Equivalents and Short-Term Investments	0.00	5.53B	883.64M	2.12B	1.60B	3.53B
Total Debt	0.00	69.04B	46.53B	31.49B	18.31B	7.88B
Total Liabilities	-20.46B	71.22B	48.42B	33.22B	18.88B	7.98B
Stockholders Equity	20.46B	20.46B	14.38B	9.84B	9.67B	9.52B
Cash Flow
Free Cash Flow	0.00	-25.00B	-15.38B	-12.61B	-11.46B	-3.59B
Operating Cash Flow	0.00	-24.74B	-15.35B	-12.20B	-11.32B	-3.47B
Investing Cash Flow	0.00	-799.24M	-2.30B	-845.42M	413.80M	-459.17M
Financing Cash Flow	0.00	26.55B	18.14B	12.79B	10.23B	5.08B

Ugro Capital Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 171.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 171 is below the 20-day moving average (MA) of 173.82, below the 50-day MA of 177.14, and below the 200-day MA of 173.33, indicating a bearish trend. The MACD of -1.47 indicates Positive momentum. The RSI at 45.07 is Neutral, neither overbought nor oversold. The STOCH value of 34.65 is Neutral, 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
ARMANFIN	68 Neutral	₹15.68B	-1,420.68	―	―	-6.03%	-100.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TFCILTD	58 Neutral	₹32.40B	29.73	―	0.90%	5.73%	12.29%
UGROCAP	53 Neutral	₹20.56B	11.39	―	―	33.99%	11.65%
MUTHOOTMF	51 Neutral	₹32.97B	―	―	―	-10.17%	-181.71%
SPANDANA	48 Neutral	₹21.54B	-1.23	―	―	-45.13%	-1646.01%

Ugro Capital Limited Corporate Events

Ugro Capital Converts Debentures to Equity Shares, Expands Capital Base

Ugro Capital Limited has announced the conversion of its compulsorily convertible debentures (CCDs) into equity shares, following the expiration of the 18-month tenure of the CCDs issued in June 2024. This conversion has resulted in the issuance of 7,342,732 new equity shares, increasing the company’s total equity share capital. The conversion aligns with the company’s strategic capital raise plan, while the unexercised warrants from the same issuance have lapsed, impacting the company’s financial structuring and market positioning.

UGRO Capital Converts Debentures to Equity Shares, Boosting Capital

UGRO Capital Limited has announced the conversion of its Compulsorily Convertible Debentures (CCDs) into equity shares, following the expiration of their 18-month tenure. This conversion increases the company’s equity share capital, reflecting a strategic move to strengthen its financial structure and market position. The conversion of 7,342,732 equity shares will align with existing shares, while unexercised warrants will lapse, impacting the company’s capital dynamics.

UGRO Capital Releases Q3 2025 Monitoring Report on Capital Utilization

UGRO Capital Limited has released a Monitoring Agency Report for the quarter ended September 30, 2025, detailing the utilization of proceeds from its preferential and rights issues. The report, prepared by India Ratings & Research Private Limited, complies with SEBI regulations and highlights the company’s adherence to capital utilization guidelines, potentially impacting its financial transparency and stakeholder confidence.

UGRO Capital Boosts Equity with CCD Conversion

UGRO Capital Limited has announced the allotment of equity shares following the conversion of Compulsorily Convertible Debentures (CCDs), raising INR 534.64 crores. This conversion increases the company’s equity share capital, indicating a strategic move to strengthen its financial position and enhance shareholder value.

Ugro Capital Limited Announces Allotment of Commercial Papers

Ugro Capital Limited announced the allotment of listed Commercial Papers, approved by its Investment and Borrowing Committee. This move, involving securities with a face value of Rs. 5,00,000 each, is part of the company’s strategy to enhance its financial offerings and strengthen its market position. The commercial papers are set to be redeemed on 17th March 2026, with an issue value of Rs. 14,45,25,900 and a redemption value of Rs. 15,00,00,000, indicating a strategic financial maneuver to optimize returns and liquidity.

Ugro Capital Announces INR 300 Crore NCD Issuance

Ugro Capital Limited has announced the issuance of up to 300,000 non-convertible debentures (NCDs) on a private placement basis, with a face value of INR 10,000 each, totaling INR 300 crore. This strategic move, approved by the company’s Investment and Borrowing Committee, includes a green shoe option to retain oversubscription of up to 150,000 additional NCDs, potentially raising an additional INR 150 crore. The issuance is part of Ugro Capital’s efforts to strengthen its financial position and expand its credit offerings, impacting its market presence and providing opportunities for investors.

Ugro Capital Announces Trading Window Closure

Ugro Capital Limited has announced the closure of its trading window in compliance with SEBI’s Prohibition of Insider Trading Regulations, 2015. This closure will be in effect from September 29, 2025, until 48 hours after the declaration of the unaudited financial results for the quarter and half-year ending September 30, 2025. This measure is part of the company’s Code of Conduct for Prohibition of Insider Trading, impacting directors, specified persons, and their immediate relatives, ensuring compliance and transparency in financial reporting.

UGRO Capital Secures RBI Approval for Profectus Acquisition

UGRO Capital Limited has received approval from the Reserve Bank of India for its proposed acquisition of Profectus Capital Private Limited, with the transaction expected to close by October 31, 2025. Additionally, the company has adjusted the terms of its Compulsorily Convertible Debentures to facilitate the acquisition, ensuring the coupon is paid immediately post-allotment.