Stock hits 5% upper circuit after partnering with UGRO Capital for machinery & solar financing

A micro-cap stock hit the 5 percent upper circuit after announcing a partnership with UGRO Capital for machinery and rooftop solar financing. The collaboration is expected to enhance funding accessibility and drive business growth.

Price Variation

During Tuesday’s trading session, shares of My Mudra Fincorp Ltd climbed to an intra-day high of Rs.61.45 apiece, hitting a 5 percent upper circuit from its previous close of Rs.58.55 each. 

Partnership with UGRO Capital

My Mudra Fincorp Limited has entered into a strategic partnership with UGRO Capital, appointing it as a Preferred Partner for financing Machinery & Equipment and Rooftop Solar Loans. This collaboration is set to strengthen financial accessibility, particularly for micro, small, and medium enterprises (MSMEs), by offering tailored lending solutions. 

By leveraging UGRO Capital’s expertise in MSME financing and My Mudra Fincorp’s extensive network, the partnership aims to support business expansion, promote sustainable energy adoption, and drive growth across key industries.

Domestic Network

My Mudra Fincorp Limited operates a nationwide franchise model. As of November 2024, the company has 9 owned branches and 154 franchisees spanning over 15 states. It also functions as a corporate Direct Selling Agent (DSA) for more than 90 banks and NBFCs in India.

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Financial Performance

Turning towards the financials of the company, My Mudra Fincorp Ltd reported Q2 FY25 revenue of Rs.33.74 crore, rising 5 percent from Rs.32.07 crore in the same quarter last year. Moreover, net profits increased by 38 percent to Rs.2.87 crore, from Rs.2.08 crore in the same period. 

Ratio Analysis

The Return on Capital Employed (ROCE) of the company stands at 23.05 percent, while the Return on Equity (ROE) is 15.29 percent. 

The company’s Price-to-Earnings (P/E) ratio is 7.99, which is lower than the industry average of 24.17. Additionally, the company maintains a solid current ratio of 25.2 and a low debt-to-equity ratio of 0.07. 

About My Mudra Fincorp Limited

My Mudra Fincorp Limited, established in 2013, serves as a channel partner for prominent banks and non-banking financial companies (NBFCs) in India. The company focuses on facilitating a range of loan products, including personal, home, and business loans. It utilizes a hybrid approach, combining both physical and digital methods to effectively reach its customers.

Written by – Siddesh S Raskar

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