Among many #fintech #stocks, we studied and feel #UGroCapital can surprise many in coming years.
Why? Will try to cover their biz. transformation, strategy, financials and future prospect in below #Thread 🧵
Do read and let us know you view😊
Here we start..
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#Investment
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#UGroCapital
⭐️Incorporated in 1994 as Chokhani Securities Private Limited then later become public and listed at BSE in 2003
⭐️Earlier mainly focused on securities biz., then tried for other biz. like merchant banker, exp. to Info.& Tech. etc. But without any big success.
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#UGroCapital
⭐️Its transformation journey start from 2017 when current CMD (Mr. Shachindra Nath) took-over & renamed it to 'U GRO Capital'.
⭐️This followed stopping all previous biz and re-capitalization & rebranding with a Tech-enabled MSME Lending Biz. model.
#Investment
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#UGroCapital
⭐️Introduced very impressive mangmnt & BoD members & started expanding the biz by leap & bound
⭐️This model of acquiring a small, listed comp. & raising significant capital to build a #fintech was an industry 1st conceptualization
⭐️Listed on NSE also in Aug-2021
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U Gro Capital
⭐️Best part is their focused approached. Among many available lending options within MSME, they funneled down the 8 key sectors due to ample opportunities and designed very robust Digital model for efficient & effective lending.
#stocks #StockMarket #Investment
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#UGroCapital
⭐️8 Sectors: healthcare, education, chemicals, food processing, hospitality, electrical equipment, auto components & engineering
⭐️All are emerging, basic need & growing seg. which themselves need huge capital
#Investment #StockMarkets #fintech #Finance #Share
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#UGroCapital
⭐️'Data Tripod', on this lending model is designed & customized heavily for each sectors & even for sub-sectors within that so within hospitals, different model for dental hospital and IVF clinic etc.
⭐️This means understanding the needs of every SME!
#Investment
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#UGroCapital
⭐️They set-up a four-pronged asset engine to capture market:
1. Branch-led channel (Prime & Micro Branches)
2. Eco-system Channel (Supply Chain & Machinery Loan Financing)
3.Partnership & Alliances channel (NBFC/ FinTech cos)
4. Direct Digital Channel
#Investment
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#UGroCapital
⭐️AUM trend as shown in attached pics:
- Sector wise
- Channel wise
- Sectoral mix (secure/un-secured)
⭐️Revenue: Good geographical coverage
⭐️Borrowing Break-up: Banks remain primary source
#Investment #StockMarkets #fintech #Finance #MSME #Share #NiftyBank
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⭐️Since transformation (2017), huge growth in Sales on QoQ
⭐️Improved OPM
⭐️Profit is turning +ve & improving
⭐️Recently tied-up with BoB & SBI
⭐️Q2FY22: Disbursements Q-o-Q growth of 139%
⭐️Highest ever monthly disbursements in Oct’21 @ Rs. 300Cr.
#Investment #StockMarkets
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#UGroCapital
⭐️Set out a target to capture 1% of the MSME lending market in next 5 years. This would translate to an AUM of roughly Rs. 20,000 Cr.
⭐️So based on the target, we can expect the #stock price can be 10X from here (CMP ~190)
#Investment #StockMarket #Nifty #Share
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