Battered Ugro Capital sparks valuation debate after 52.14 percent slide

Market pulse

From the investor's mind

Electric vehicle maker Ather is set to more than double its total manufacturing capacity from 4.2 lakh units to 9.2 lakh units later this calendar year following the go-live of its AURIC facility. Despite this massive supply expansion, the company expects to continue facing supply constraints because of exceptionally high demand. Highlighting these details from the company's first quarter earnings call, Aditya Kondawar points out that the demand for the company's vehicles is ramping up so rapidly that even a two-fold increase in production capacity will not be enough to fully satisfy the market.

Word in the street

Ugro Capital Limited

Ugro Capital Limited, now valued at about 1,320 crore after a painful 52.14 percent slide over the past year, has sparked intense debate. Many early backers have trimmed or entirely sold their holdings to escape this unsettling wealth destruction, though some argue that trading at 0.5x book value unfairly prices it like an NPA-laden institution. The primary concern revolves around the February 2026 decision to shut down the Prime Intermediated vertical. This shutdown forces early loan foreclosures, immediately pulling forward remaining unamortized direct selling agent costs. Since this amortisation drag accelerated as the book shrank fifteen percent in the first quarter, the pressure on earnings may linger.

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