10% GNPA in SCF looks elevated due to the fact that management has completely halted the disbursement of loans in this vertical.
One observation: If you completely remove the 355cr outstanding book of SCF the GNPA on rest of the AUM is only 1.8%.
Disbursement of 615cr as co-lending is huge (highest in it’s peer, like SBFC and Five star), this shows the banks trust Ugro’s underwriting methodology. Massive debt raised at the time, when bank lending to NBFC is not prevalent, is worth mentioning.
I feel the business momentum is good and the management has finally found their Mojo (micro enterprise lending), and share should also do good in the quarters to come.
Invested and biased
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