Ugro Capital share price: 5 key reasons why brokerages see 60% more upside in this NBFC stock
Stock to buy today: Ugro Capital share price has been in uptrend after ushering in the new financial year 2024-25. The NBFC stock bottomed out at around ₹215 per share level at the end of March 2024. After bottoming out and touching 52-week los of ₹210.25 ion 26th March 2024, Ugro Capital share price has rallied to the tune of ₹272 apiece level, recording nearly 25 percent rise from its 52-week low.
However, leading brokerages see a substantial upside in this NBFC stock after announcing Q4 results in 2024. These leading brokerages see the Ugro Capital share price touch up to ₹440 apiece in the long term, delivering around 60 per cent returns to its positional shareholders. On critical reasons that may fuel Ugro Capital shares in the medium to long term, the brokerages list five reasons that are as follows: strong Q4 results in 2024, Expansion in business via acquisitions, capital raise to meet the demand for growth capital, strong growth story, and rating upgrade by CRISIL.1] Strong Q4 results 2024: Pointing towards strong Q4FY24 results, Sonal Gandhi, Research Analyst — NBFC at Centrum, said, "Ugro capital reported Adj.
PAT of ₹396mn, up 70% YoY and 22% QoQ, 17% ahead of our estimates due to higher than expected other income on derecognition of financial instruments. Reset of interest yields on an existing book, increase in the share of co-lending and Direct Assignment, and some one-offs resulted in higher upfronted income in Q4. Total income at ₹2.0bn grew 60% YoY and 24% QoQ, 18% ahead of our estimates.
Opex to AAUM at 4.8% declined 60bps YoY but increased 50bps QoQ. However, the C/I ratio at 52% declined 760bps YoY and 117bps QoQ, aided by higher total income in 4QFY24. Growth in operating profit was strong, up 90%
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