Ugro Capital (UGROCAP)

FairStock Score: 40/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is offering UGRO Capital at ₹93.34, while its stated book value is ₹190.16 — a P/B of 0.49. That catches a Grahamite eye. But I must ask whether those assets are worth carrying value, especially for an NBFC with debt/equity of 3.74. Leverage magnifies both returns and risks, and here ROE is only 6.35% while ROCE is 11.05%. Those are not the numbers of a high-quality compounder. The latest quarter shows sales of ₹409 Cr but net profit of just ₹6 Cr, a very thin margin. Scale has not yet translated into robust profit. Yes, the 5-year revenue CAGR is 63.45%, and profit growth is 33.70%, but current sales growth is only 6.70%, so the rapid expansion may be fading. FairStock score 40/100 and Piotroski F-Score 4/9 confirm mixed quality. P/E of 6.53 and PEG of 1.36 are not demanding, but a low P/E can be a value trap if earnings do not persist. Promoter holding at 1.70% is a serious alignment concern; I prefer owners with meaningful skin in the game. No dividend yield. The 52-week range of ₹78.63–₹189.92 shows how far sentiment has swung. As Buffett, I want a durable moat; as Graham, I demand a margin of safety. The margin here depends entirely on book value being sound, which these figures do not prove. I would call it a speculative asset play, not a stalwart. Watch profitability, leverage, and promoter holding before committing.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer