New Delhi, Feb. 9 -- Small-cap stock Ugro Capital has seen significant pressure over the last two years. However, the company's focus on improving profitability seems to have influenced experts' views about the stock.

Brokerage firm Elara Capital has initiated coverage on the stock with a buy rating, setting a target price of Rs.226. Given the stock's previous close of Rs.147.15 on the BSE, Elara's target price implies a 54% upside potential in the stock.

"UGRO Capital sets itself apart with a best-in-class tech platform, driving a strong AUM CAGR of 69% over the past five years. The stock is trading at sub‑book 0.8 times FY27E P/ABV. We believe shifting gears to profitability over growth should boost cash RoA and trigger a multip...