I was going through the guidance of CreditAccess Grameen Ltd one of the alleged competitor of Ugro in Micro financing. Management guided for 20-25% loan growth and ROA – 5.4 – 5.5% from FY25-FY28.
This looks incredible to me as per this the Mcap could be around 70k cr at the end of FY28.
I am wondering how the micro finance industry is growing at this insane rate and how big is this market segment, why even the big players like Bajaj finance is also exploring this market?
Ugro Capital is also banking on providing micro financing to small retailers for increasing it’s ROA. Do you think Ugro can be a substantial player in this industry? If this is possible, we are looking at a multibagger with a potential of 15-20x from here in the next 10years.
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