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

Q1 concall Notes

• India has a financial gap of 1.06 crore crores rupees in MSME lending.
• Out of 100 loan applicants, only 30 are approved based on the GRO score.
• The bank aims for a 30% annual loan growth by 2025.
• Off-book loans are expected to increase from 43% to 50%.
• The yield is approximately 17.3%.
• The book value is Rs 145.
• Prime customers are those with turnovers of 50 lakhs to 10 crores, willing to pay 19% for a 3-year unsecured loan.
• The bank has given a 5 crore loan with UGRO X as part of a pilot, with 95 crore pending.
• The target is to achieve 20,000 crore Assets Under Management (AUM) by the end of FY25.
• This year’s AUM is projected to be around 10,000 crore.
• The bank plans to add around 8,000 crore AUM next year.
• The projected GNPA by the end of the year is 1.9%.
• Credit cost covers only on-book loans. Off-book loans are taken care of by the bank, with 80% by the off-book bank and 10% in DA
• The expected tax rate is 29%.
• 20% of AUM does not include GST, where 10% is micro, and 10% is partnership and alliance loans secured by collateral.