Authum Investment & Infrastructure Limited

Financial Services — Capital Markets · NSE

₹572.00+₹30.65 (+5.66%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by short-term liabilities exceed short-term assets.

In simple words: Strong business and financial position, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of Authum Investment & Infrastructure Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Authum Investment & Infrastructure Limited, a non-banking finance company, engages in investment, trading, and lending activities in India. It operates through the Investment Activity, Lending Activity, Rental Business, and ARC segments.

IndustryCapital Markets

SectorFinancial Services

Employees358

Annual revenue₹1,298 Cr

How does it make money?

Turns over ₹1,298 Cr a year. Of every ₹100 of sales, about ₹149 reaches shareholders as profit, with ₹176 left at the operating level before interest, tax and depreciation. Each of its 358 employees supports ₹3.63 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin175.8%

Net margin148.6%

Revenue / employee₹3.63 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROCE15.2%

ROE13.1%

Peer median ROE13.7%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +201% while net margin moved -85% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+201%

Margin effect-85%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Revenue CAGR of 44.4% — compounding well above nominal GDP
✗ Profit has declined at 23.5% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Latest-year revenue growth of 14.1% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

65/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

23.1x

3Y Median

9.3x

32 monthly readings · mean 8.5x · range 3.3x–12.9x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 149% above its 3y median of 9.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 60% below the peer median of 58.4x.

vs. its own history

Expensive

9.3x median over 32 months · +149%

vs. sector peers

Cheap

58.4x median of 3 peers · -60%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

23.1x

P/B

3.30x

EV/EBITDA

22.8x

PEG

1.32

Dividend Yield

0.03%

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 313.1% to 175.8% over 3 years.
Return on equity is falling
ROE has dropped from 126.0% to 13.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 81.8% to 15.2% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 16781% against revenue growth of 201% — customers are taking longer to pay.
Valuation above its historical average
At 23.1x the stock trades 149% above its own median of 9.3x.
Short-term liquidity is tight
Current ratio of 0.52 — near-term obligations exceed near-term assets.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 137.3 points, from 313.1% to 175.8%.
🟡Profit is decliningFinancial
Net profit is down 55% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 60% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 313.1% to 175.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 149% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 126.0% to 13.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 33% a year✓ 44.4% CAGR
Latest reported year was 14.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 174%✓ 175.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 11%✓ 13.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 9.3x✗ 23.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹48,576 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

23.1x

Fair

Fairly valued against the generic band

P/B Ratio

3.30x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹24.76

Profitable

Profitable on a per-share basis

ROE

13.1%

Moderate

Moderate capital efficiency

ROCE

15.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

14.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

17.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.03%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹1,115 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹572

Operating Margin

92.4%

Good

Healthy core-business profitability

Net Margin

82.1%

Good

Strong bottom-line conversion

Current Ratio

0.52

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.05

Defensive

Steadier than the market

52W Range Position

61%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

551.2 / 548.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹431 Cr	₹2,245 Cr	₹2,882 Cr	₹1,298 Cr	+44.4%
EBITDA	₹1,350 Cr	₹6,136 Cr	₹4,534 Cr	₹2,282 Cr	+19.1%
EBITDA Margin	313.1%	273.4%	157.3%	175.8%	—
PAT (Net Profit)	₹4,304 Cr	₹4,285 Cr	₹4,241 Cr	₹1,929 Cr	-23.5%
EPS	₹50.68	₹50.46	₹49.94	₹61.61	+6.7%
ROE	126.0%	41.4%	28.9%	13.1%	—
ROCE	81.8%	39.3%	27.4%	15.2%	—
Total Debt	₹1,502 Cr	₹1,128 Cr	₹1,054 Cr	₹3,598 Cr	+33.8%
Free Cash Flow	₹239 Cr	₹3,242 Cr	₹253 Cr	₹1,115 Cr	+67.0%

🟢 Revenue has grown at 44.4% a year over 3 years.

🟢 EBITDA has grown at 19.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 313.1% to 175.8% over 3 years (-137.3 pts).

🔴 PAT (Net Profit) has shrunk at 23.5% a year over 3 years.

🟢 EPS has grown at 6.7% a year over 3 years.

🔴 ROE has fallen from 126.0% to 13.1% over 3 years (-112.9 pts).

🔴 ROCE has fallen from 81.8% to 15.2% over 3 years (-66.6 pts).

🔴 Total Debt has grown at 33.8% a year over 3 years.

🟢 Free Cash Flow has grown at 67.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹19,211 Cr

Total Liabilities

₹4,445 Cr

Total Debt

₹3,598 Cr

Cash & Equivalents

₹50 Cr

Operating Cash Flow

₹1,455 Cr

Capex

-₹341 Cr

Shareholding (proxy)

Institutional Holding

7.1%

Insider Holding

83.1%

Corporate Actions

Dividend Rate

₹0.2

Ex-Dividend Date

16 May 2025

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

1 mixed5 general

Authum Investment promoters disclose no encumbrance on shares in FY26

scanx.trade, 18 Oct

Authum Investment & Infrastructure (AIIL) Share Price rises 2.01% to Rs 550.2; market cap at Rs 45,802.98 Cr

Univest, 05 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Authum Investment & Infrastructure - Concurrent Gainers: 15 stocks that gain for 5 days in a row

The Economic Times, 08 Aug

Top stocks to buy or sell today: Stock market recommendations for October 9, 2026 - check list

The Times of India, 09 Oct

Authum Investment and Infrastructure to invest ₹102 crore in ISARC through rights issue

CNBC TV18, 18 Aug

Authum Investment & Infrastructure Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 26 Aug

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.9/20

🟢Financial HealthStrong17/20

🔴GrowthWeak8.9/20

🟡ProfitabilityModerate8.9/15

🟡ValuationFair7.3/15

🟢RiskLow7.5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 33% a year44.4% CAGR
✓EBITDA margin holds above 174%175.8%
✓Return on equity stays above 11%13.1%
✗Valuation vs its own median of 9.3x23.1x today