Ugro Capital – Opportunity To Invest in a Fintech-like Company Below Book Value

Ugro capital Q4 FY23 earning call summary
In addition to inputs from @Akashdeep & @njain1983 , these are some of the points I noted from Ugro earning call.

• AUM growth continues to be high – 600 cr dispersal in March alone, only 30% acceptance rate. FY24 target of 6400 cr disposal.
• Opex spending to be slow down in coming quaters, target double digit RoE for FY24 and High teens RoE for FY25.
• post covid portfolio (With Gro 2.0) perform much better than restructured portfolio during covid.
• Supply chain financing is strtegically important on 2 reasons

1. Enables short term lending, helps with ALM
2. Open door for cross selling of many other products

• Co-lending with 2-3 private sector banks will happen next year.

I agree with @njain1983 regarding management integrity of Ugro Capital, looks like trustworthy and shareholder friendly management. But guidance’s are aggressive and biggest challenge will be to maintain asset quality.