Ugro Capital: PAT up 62% & Revenue up 37% in 9M-24 at a PE of 22
Strong roadmap for growth in place based on guidance for FY25. Based on 9M-24 performance, UGRO is on track to deliver as per FY24 & FY25 guidance.
1. NBFC & India’s largest Co-lender in the MSME segment,
ugrocapital.com | NSE: UGRO
Heading Towards Serving 1% of MSME Lending Market
2. FY20-23: PAT CAGR of 27% & Net Total Income CAGR of 62%
3. FY23: PAT up 173% & Net Total Income up 123% YoY
4. H1-24: PAT up 329% & Net Total Income up 76% YoY
5. Q3-24: PAT up 148% & Net Total Income up 51% YoY
PAT up 13% & Revenue up 10% QoQ
6. Strong 9M-24: PAT up 237% & Net Total Income up 66%
7. Business metrics: Strong return ratios & cash generation
8. Strong outlook: Road map in place till FY25
i. FY24: On track to deliver as per guidance
AUM INR10,000 cr
RoA of 3.1%
RoE of 10%
ii. On track to deliver on FY25 guidance
9. PAT growth of 237% & Net Total Income growth of 66% in 9M-24 at a PE of 22
10. So Wait and Watch
If I hold the stock then one may continue holding on to UGRO
Based on 9M-24 performance, UGRO looks on track to deliver the strongest PAT in FY24
UGRO is in the middle of a strong run. It has delivered sequential QoQ growth of PAT for four quarters in a row.
UGRO is on track to deliver as per the FY24 & FY25 guidance
11. Join the ride
If I am looking to enter UGRO then
UGRO has delivered PAT growth of 237% & Net Total Income growth of 66% in 9M-24 at a PE of 22 which makes the valuations quite reasonable.
With a stock price of Rs 261.5 against a book value of Rs 153.8 as of Q3-24 end implies that UGRO is available a price to book of 1.7 which makes the valuations reasonable
The guidance for FY25 aims for a ROE of 18%. The net-worth of Rs 1405 cr as of Q3-24 end implies a FY25 PAT of Rs 250+ cr (18%X1405) which could be a 100%+ growth over the FY24 PAT. Even if PAT grows by 50% in FY25, there is opportunity in UGRO.
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