During the trading session of Friday, the shares of a registered NBFC with core business operations focused on investing and lending slumped nearly 5 percent to hit an intraday low at Rs. 1,758.1 on BSE.
With a market capitalisation of Rs. 31,068 crores, the shares of Authum Investment & Infrastructure Limited opened at Rs. 1,849, as against its previous closing price of Rs. 1,848.7.
Stock Performance
The stock has delivered multibagger returns of around 82,000 percent over a five-year period, spanning from Rs. 2.23 in October 2019 to the current stock price level of Rs. 1,829.2.
This indicates that if an investor had invested Rs. 10,000 in the stock five years ago, it would have gained to nearly Rs. 82 lakhs.
In the previous six months, the stock has delivered multibagger returns of nearly 144.6 percent, as well as around 140 percent returns in the last one year. So far in 2024, the shares of Authum Investment have given about 83.6 percent of positive returns.
Financials:
The company experienced significant growth in its total income, showing a year-on-year rise of around 2,215 percent from Rs. 61 crores in Q1 FY24 to Rs. 1,412.4 crores in Q1 FY25.
Similarly, its net profit increased during the same period from Rs. 33 crores to Rs. 1,093 crores, indicating a rise of nearly 3,212 percent YoY.
The company reported an EBITDA margin of 111.2 percent, while Return on Capital Employed (RoCE) and Return on Equity (RoE) stood at 39.3 percent and 44 percent, respectively.
The net worth of Authum increased from Rs. 10,345 crores as of March 2024 to Rs. 10,931 crores as of June 2024 on account of the realisation of profits on investments and strong recovery from the credit business.
Future Outlook:
In FY25, the company anticipates allocating capital to pursue a balanced mix of Equity and Credit, shifting from approximately 100 percent to the current 85:15 ratio, with a medium-term goal of achieving a 60:40 balance between Equity and Credit.
In FY26, Authum Investment aims to create multiple platforms that are both synergistic and independent, contributing to a long-term growth roadmap.
By FY27, the company targets a return on equity (RoE) of 16-20 percent across all platforms to ensure continued value creation and aspires to eventually develop a full-suite financial services company.
About the company:
Incorporated in 1982, Authum Investment and Infrastructure Limited is a non-deposit-taking Systemically Important NBFC registered with the Reserve Bank of India (RBI) and is primarily engaged in the business of providing loans and making investments/trading in shares and securities.
The company is engaged in long-term equity investment across listed and unlisted space, and recently diversified into building a fully integrated Credit Platform.
Authum Investment invests mostly in large and mid-cap companies which are either market leaders or have the potential to become market leaders in 5-7 years.
Written by Shivani Singh
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