Do you own this multibagger stock that rallied 8 per cent on July 28?

BSE-listed Ugro Capital Ltd is a small business loan fintech platform, which is focussed on delivering specialised lending solutions to small businesses.

BSE-listed Ugro Capital Ltd is a small business loan fintech platform, which is focussed on delivering specialised lending solutions to small businesses. The company has raised Rs 920 crore in capital from a variety of private equity funds, including renowned family offices and institutional investors. The shares of Ugro Capital rose 13.5 per cent in the last five trading sessions. Also, it delivered a return of 24.56 per cent in the month of July alone. On a YoY basis, the stock has appreciated by 53.28 per cent.  

Let’s look at the key highlights of the company:  

·         Crossed an AUM of Rs 3,650 crore and is on the track to double the same by March 2023. It aims to achieve an AUM of Rs 20,000 crore by 2025.  

·         Recorded the highest disbursal figure of Rs 1,359 crore in the quarter ended June 30, 2022. 

·     Demonstrated the power of co-lending after having kicked off this stream by experimenting with top public sector banks.  

·         Current off-book AUM stands at approximately Rs 750 crore (21 per cent as of June 30, 2022) while the company aims to grow its loan book under co-lending partnerships by 3X to over Rs 2,000 crore by March 2023.  

·         Pioneered ‘lending-as-a-service (LaaS)’ model by harnessing the power of co-lending/co-origination models that is steering the company towards transitioning into a lending platform through an off-balance sheet AUM approach.  

·         Revolutionising MSME lending through its data analytics prowess and robust technology architecture. As a testimony to the same, its proprietary scoring model (GRO score) has successfully processed over 21,000 applications, 67,000 plus bureau records, around 45,000 bank statements, and over 14,500 GST records in the last one year.  

 Financial snapshot:  

• As of Q1FY23, the company’s total income stood at Rs 123.8 crore, witnessing a jump of 141.4 per cent as compared to Q1FY22. 
• Its PAT grew by 329.4 per cent from Q1FY22 to Rs 7.3 crore as of Q1FY23. 
• The company added over 5,000 customers, taking the count to over 25,000 as of June 2022. It has 96 branches and 1,275 plus employees as of the above-mentioned period.

Meanwhile, the company raised approx. Rs 3,000 plus crore of equity & debt capital from marquee private equity investors, family offices, banks, and other financial institutions over the last three years.  

Keep an eye out for this stock in the upcoming sessions.