One reason for lack of buying frenzy in Ugro capital could be that this stock does not figure in the broker funding list due to which punters, day traders etc are unable to play in this counter.
Only when the liquidity goes up along with market cap, ugro will become eligible for broker funding
My guess is that by January the stock price my go upto 750-800 and a bigger run in price will happen after that. So 2024 would be time to sleep for Ugro capital investors.
Another important thing is that the mngt has said that they have raised capital now to take care of any adverse market conditions later on. So that takes care of any election related surprise in June 2024 or a black swan event like Capital gains tax shocker in the coming budget or recesssion in US…etc. With additional capital locked in and branch expansion in place and interest rates expected to come down and ratings upgrade…its time for Ugro mngt and employees to run hard …run fast and deliver the promised 4% ROA & 18% ROE.
This makes Ugrocap a safe investment stock for next 2 years with a potential price target of around 1000
incidentally the long term chart pattern is more bullish. If there is a close above 350 by end of June quarter, then ugro becomes an excellent momentum stock too…it then makes a transition from being potentially bullish to being actually bullish.
Those who wish to buy more of ugro may wait for a weekly close above 290…till then its better to wait on sidelines.
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