The shares of the NBFC reached a 52-week high to Rs.1,218.8 per share after reporting an increase of 3212 percent in net profits year-on-year.
Price Movement
In Thursday’s trading session, Authum Investment & Infrastructure Ltd’s share price reached a 52-week high of Rs.1,218.8 per share from its previous close of Rs.1,073.7 apiece. The share gained nearly 14 percent from the previous close.
Financial Performance
The uptick in the stock price was driven by robust financial results, including significant growth in net profits and revenue.
With a market capitalization of Rs.19,346 crores, Authum Investment & Infrastructure Ltd reported standalone revenue of Rs.1,412 crores for the quarter ending June 2024. This marks a 2,214 percent increase from Rs.61 crores in the same quarter last year and a 60 percent rise from Rs.886 crores in Q4 FY24.
The company saw a remarkable 3,212 percent year-over-year increase in Profit After Tax (PAT), reaching Rs.1,093 crores in Q1 FY25, up from Rs.33 crores in the June 2023 quarter. However, on a quarter-on-quarter basis, PAT decreased by 27 percent from Rs.1,498 crores in Q4 FY24.
Despite revenues of Rs.886 crore in Q4 of FY24, the company generated profits of Rs.1,498 crores because of impairment (reduction) of financial instruments of around Rs.450 crore, as per their filing.
Authum Investment & Infrastructure Ltd has shown remarkable growth in financial ratios. Its price-to-earnings ratio stands at 6.24, significantly lower than the industry average of 35.67.
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The company reported an Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin of 111.2 percent, while Return on Capital Employed (ROCE) and Return on Equity (ROE) stood at 26.4 percent and 28.43 percent, respectively.
Wide Reach
Authum Investment & Infrastructure Ltd holds a robust pan-India distribution network, comprising approximately 25 branches and a dedicated team of over 425 members. The company extends its reach to around 170 locations through a comprehensive vendor network.
Additionally, Authum operates a centralised call center with a capacity to handle 100,000 calls per month and collaborates with over 120 field agencies and 30 repossession/enforcement agencies.
Shareholding Composition
As per the June 2024 shareholding pattern, the promoters of Authum Investment & Infrastructure Ltd hold a 74.95 percent stake, while Foreign Institutional Investors hold a 7.23 percent stake. Retail investors, comprising individual investors and others, hold a stake of 17.82 percent in the company.
About the company
Authum Investment & Infrastructure Limited specialises in fund-based activities, including investments in shares, securities, and mutual funds, as well as providing loans and advances to individuals and businesses.
Written by – Siddesh S Raskar
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