Ugro capital is scaling down on supply chain financing…as explained in the last concall…
Those vendors supplying to AAA rated companies and those dealers buying from AAA rated companies are getting loans from banks @7.5%…whereas ugro capital cost of capital ia 10.5%…so to get higher yield, they were forced to go to BBB rated dealers and vendors …which leads to spike in NPAs…so they decided to scale back on this financing
Excluding supply chain financing…AUM has gone up from 6192 crores to 8765 crores QnQ…
Now instead of financing top of the supply chain…dealer and vendor…they are moving to the bottom of the supply chain…the retailers…where yields are higher…there is no competition from banks…and more amenable to their Grow platform / data analytics / cash flow analysis.
Mngt needs to clarify only one thing…do they still stand by their target of 18000-20000 crores AUM by end of Fy2026?
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