Ugro Capital shares up 82% in 2023 so far; can stock revisit one-year high level?

Shares of Ugro Capital Ltd were trading higher in Wednesday's deals, pausing their five-day losing run. The stock was up 3.93 per cent at Rs 272.70. At this price, the scrip was down 14.74 per cent from its 52-week high of Rs 319.85, a level seen on August 22, 2023. Although, the multibagger counter has gained 100.52 per cent from its one-year low price of Rs 136, hit on December 23 last year. On a year-to-date (YTD) basis, it has gained 81.80 per cent.     

After Reserve Bank of India (RBI) tightened norms for consumer credit, Ugro today said it do not expect any impact of the increased risk weights either on its growth trajectory or profitability path.

"Our borrowing is a mix of borrowing from banks, capital markets, DFIs and other financial institutions. We have some of our bank borrowing towards priority sector loans as per the RBI definition of onward lending. We don't foresee a significant impact on liquidity," the company stated.

"We would like to inform you that the debt equity ratio and the capital adequacy of Ugro, as on September 30, 2023, was 2.8x, and 24.8 per cent, respectively," it added.

DRS Finvest founder Ravi Singh said, "The company's AUM (asset under management) has reached Rs 7,592 crore till Q2 FY24 and it may hit Rs 10,000 crore by end of this year.

On the technical front, support on the counter could be seen around Rs 250. An analyst suggested that only a decisive breach above Rs 285-290 zone can trigger further momentum.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Ugro Capital is in a consolidation phase. A decisive plunge below Rs 260-odd zone could disrupt the ongoing trend and it may slip to Rs 240-odd level. On the higher end, an authoritative surpass beyond the Rs 285-290 zone could only trigger further momentum."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "As we advance, Rs 240–245 would be an ideal zone to buy for a target of Rs 300 with a stop loss at Rs 225. We can expect further corrections until Rs 240 in the coming few sessions."

Ravi Singh from DRS Finvest said Ugro may see Rs 280 level in near term.

AR Ramachandran from Tips2trades said, "Ugro Capital is bearish on daily charts with strong resistance at Rs 279.15. Investors should buy only if a daily close is above the said resistance for a target of Rs 310 in the coming weeks. Next support will be at Rs 256."

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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