Sovrenn Daily News - 3rd Jan 2025

Ugro Capital Ltd.

Recent filing: (FUND RAISE) BoD approved the issuance of 1L NCDs at face value of INR 10k, aggregating to INR 100 Cr, with a green shoe option to retain oversubscription upto INR 50 Cr.

(ACQUISITON) Company has signed a Share Purchase Agreement (SPA) and Shareholders' Agreement (SHA) on January 1, 2025, to acquire 100% ownership of Datasigns Technologies Private Limited (DTPL), a leading embedded finance fintech platform based in Bangalore. The acquisition will be completed in two tranches.

SUMMARY: 6y Financing Profit uptrend | PE 16.6x (Sector PE range 20-40) | Ace Investor | Fund raise | Institutional entry | Acquisition | Promoter buying | NBFC

• MCap of INR 2,175 Crore (share price = INR 234 / share) (as on 3rd Jan ‘25)
• TTM PE of 16.6x (as on 3rd Jan ‘25) Retail float = 12.4% (Sep-24)

FOOD FOR THOUGHT: SBI Life Insurance reduced its stake from 1.2% in Dec-23 to less than 1% in Mar-24.

Company Description: Ugro Capital is a technology focused, small business lending platform. It is focused on addressing capital needs of small businesses operating in select eight sectors by providing customized loan solutions. UGRO mission is 'Solve the Unsolved - the US $600Bn Small Business Credit Need. It believes that the problem of small businesses can be solved by building deep expertise around core.

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Vishnu Prakash R Punglia Ltd.

Recent filing: (ORDER) Company has been declared the lowest bidder for the EPC project worth INR 43 Cr for construction of a 2-lane bypass with paved shoulders and a new ROB connecting NH-158 to NH-48 in Mandal, Rajasthan.

SUMMARY: 6y Operating Profit uptrend | PE 30.8x (Sector PE range 10-50) | Orderbook of INR 5,086 Cr (Sep-24) (3.4x of TTM revenue) | Institutional entry | Water Infra

FUTUTRE OUTLOOK: Company expects 10%-15% growth for FY25 and over the next two years, while maintaining EBITDA margins of 13%-14%. Company has an order book of INR 5,086 Cr, to be executed over the next 24-36 months.

• MCap of INR 3,799 Crore (share price = INR 305 / share) (as on 3rd Jan ‘25)
• TTM PE of 30.8x (as on 3rd Jan ‘25) Retail float = 20.0% (Sep-24)

FOOD FOR THOUGHT: Sixteenth Street Asian Gems reduced its stake from 1% in Dec ’23 to close to 0% in Mar ’24. Quant Small Cap Mutual Fund reduced its stake from 4.1% in Mar ’24 to close to 0% in Jun ’24.

Company Description: Established in 1986, Vishnu Prakash is a fast-growing Infrastructure Development Company. Its principal business operations are Infrastructure Development Works on EPC mode including their operation and maintenance activities in sectors including: Water, Sewerage, Railway, Road, Tunneling Works, etc.

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Atmastco Ltd.

Recent filing: (FUND RAISE) Board has approved the issuance of 34.35L equity shares and 4.8 L warrants at INR 251/share, aggregating to INR 98 Cr. Subscribers include Mavira Growth Opportunities Fund and Promoter Group.

SUMMARY: 4y Operating Profit uptrend | 2q Operating Profit uptrend | PE 29.5x (Sector PE range 30-60) | Excellent Sep-24 results | Entry into Defence | Fund raise | Promoter Buying | Institutional entry | EPC

• MCap of INR 717 Crore (share price = INR 290 / share) (as on 3rd Jan ‘25)
• TTM PE 29.5x (as on 3rd Jan ‘25) Retail float = 20.2% (Sep-24)

FOOD FOR THOUGHT: Highly Competitive sector

Company Description: Company initially focused on trading steel products, industrial goods, and related items. Over time, it expanded its operations to include commercial activities in the engineering and erection business, broadening its scope and expertise.