Recent Price Movement and Market Context
On the day the new low was hit, Ugro Capital’s share price fell by 1.14%, underperforming its sector by 0.41%. This decline extends a three-day losing streak during which the stock has shed 9.33% of its value. The current price of Rs.146.3 stands well below the stock’s 52-week high of Rs.233.55, highlighting a substantial correction over the past year.
The broader market environment has also been challenging. The Sensex opened 385.82 points lower and was trading at 81,615.02, down 0.69% on the same day. The index has experienced a three-week consecutive decline, losing 4.84% in this period. Notably, the Sensex is trading below its 50-day moving average, although the 50-day average remains above the 200-day moving average, indicating some underlying resilience in the broader market.
Ugro Capital’s technical indicators reflect a bearish trend, with the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day. This technical positioning suggests sustained selling pressure and a cautious market sentiment towards the stock.
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Long-Term Performance and Valuation Metrics
Over the past year, Ugro Capital has delivered a total return of -32.12%, significantly underperforming the Sensex, which gained 7.62% during the same period. The stock’s underperformance extends beyond the last 12 months, with returns lagging behind the BSE500 index over the last three years, one year, and three months.
This sustained underperformance has contributed to the recent downgrade in the company’s Mojo Grade from Hold to Sell as of 5 Jan 2026. The current Mojo Score stands at 43.0, reflecting a cautious outlook based on the stock’s relative price action and fundamental factors.
Despite the price decline, Ugro Capital maintains an attractive valuation profile. The stock trades at a Price to Book Value of 0.9, which is considered fair relative to its peers’ historical averages. The company’s Return on Equity (ROE) is 6.3%, indicating moderate profitability in relation to shareholder equity.
Fundamental Growth Trends
Ugro Capital’s long-term fundamentals show robust growth in key financial metrics. The company has achieved a compound annual growth rate (CAGR) of 84.30% in operating profits, underscoring strong earnings expansion over recent years. Net sales have also grown at an impressive annual rate of 66.88%, reflecting consistent top-line momentum.
Quarterly results for September 2025 further highlight this growth trajectory. Net sales reached a record Rs.455.40 crore, while profit before depreciation, interest, and taxes (PBDIT) hit Rs.288.01 crore, the highest quarterly figure recorded by the company. The operating profit margin relative to net sales also peaked at 63.24%, indicating efficient cost management and operational leverage.
Profit growth over the past year has been positive, with an 18.6% increase despite the stock’s price decline. This divergence between earnings growth and share price performance suggests that market sentiment has not fully aligned with the company’s financial progress.
Shareholding and Institutional Interest
Institutional investors hold a significant stake in Ugro Capital, accounting for 24.02% of the share capital. This level of institutional ownership typically reflects confidence in the company’s fundamentals and governance, as these investors possess the resources and expertise to conduct detailed analysis.
Sector and Industry Positioning
Operating within the Non Banking Financial Company (NBFC) sector, Ugro Capital faces a competitive and evolving market environment. The sector has experienced volatility in recent months, influenced by macroeconomic factors and regulatory developments. The stock’s recent underperformance relative to its sector peers adds to the challenges faced by the company in maintaining investor confidence.
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Summary of Key Metrics
To summarise, Ugro Capital Ltd’s stock has reached a new 52-week low of Rs.146.3, reflecting a combination of recent price declines and longer-term underperformance relative to market benchmarks. The company’s fundamentals remain strong, with impressive growth rates in operating profits and net sales, alongside healthy quarterly results. Valuation metrics suggest the stock is trading at a reasonable level compared to peers, supported by a moderate ROE and significant institutional ownership.
However, the stock’s technical indicators and recent price action indicate continued downward momentum, compounded by a challenging market environment and sector pressures. The downgrade in Mojo Grade to Sell further highlights the cautious stance adopted by rating agencies based on the stock’s relative performance.
Market Outlook and Considerations
While the broader market, represented by the Sensex, has experienced a recent decline, it retains some technical support with the 50-day moving average above the 200-day average. Ugro Capital’s deviation from this trend, trading below all major moving averages, underscores the stock’s current vulnerability within the NBFC sector.
Investors and market participants will likely continue to monitor the company’s financial results and sector developments closely, given the divergence between earnings growth and share price performance observed over the past year.
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