19,600% Rally In 5 Years: Rs 1 Lakh Investment In This SmallCap NBFC Stock Turns To Rs 2 Crore; Do You Own?

From trading at meagre Rs 2.5 to skyrocketing to over Rs 500 per share levels, Authum Investment & Infrastructure, a smallcap NBFC stock has made a long journey on BSE in five years. From being a penny stock to making investors crorepati, Authum Investment share is currently among high returns stocks in percentage terms. The stock witnessed volatile trading on Wednesday after rising impressively for the past three consecutive trading sessions with a new all-time high of Rs 580 apiece recorded on August 8th. Investors are cashing in their gains as Authum's 5-year returns are by over behemoth 19,600%.

On BSE, at the time of writing, the stock traded flat at Rs 498.45 apiece. However, it ranged broadly between Rs 516 to Rs 485 apiece on Wednesday. At the current market price, the stock has a capitalisation of Rs 8,466 crore.

Despite the volatility, Authum shares monthly upside is over 38% on BSE, while the half-yearly gains are a whopping 168%, making the stock a multi-bagger eventually. Year-to-date, the stock has rallied by nearly 126% on the exchange.

Authum's stock stood on a winning streak for three days in a row from August 4 to 8th, rising by 27.4% during these days. On Tuesday, the stock even hit a fresh lifetime high of Rs 580 apiece.

The reason behind the stellar performance came when it informed the exchange about its wholly-owned subsidiary Reliance Commercial Finance received approval for subscribing equity shares of Anil Ambani companies like Reliance Infrastructure and Reliance Power.

As per the regulatory filing dated August 5th, Reliance Commercial Finance ('RCFL'), a wholly owned subsidiary of Authum, has approved to subscription 4,43,41,194 equity shares of Reliance Infrastructure for Rs 201/- per share and 7,59,77,000 equity shares of Reliance Power for Rs 20/- per share, on preferential issue basis consequent upon conversion/appropriation of the outstanding dues of RCFL, subject to all permissions, sanctions and approvals as may be necessary.

The equity shares subscription will be aggregated to Rs 891.2 crore in Reliance Infra and Rs 151.95 crore in Reliance Power.

Coming to its stock price performance, Authum is one of the successful stories for long-term wealth creation.

Authum's shares were near Rs 2.5 apiece, five years ago, on August 10, 2018. Since then, it has given mind-boggling 19,564.03% returns on BSE till date.

Using Axis Direct Calculator, let's suppose an investor had bought Rs 1 lakh worth of shares in Authum in August 2018, then they are sitting on a lumpsum value of a whopping Rs 2.11 crore to date at the current market price.

Among corporate actions, Authum carried a stock split of the face value of Rs 10 per share to Re 1 per share in October 2021. Prior to this, the company carried a rights issue in February 2021.

Authum Investment was incorporated in 1982 and is listed on BSE and Calcutta Stock Exchange. The company is a registered NBFC carrying on the business of investment in shares and securities and financing activities to achieve the goal of enhancing the value for its stakeholders.

The company acquired Reliance Commercial Finance as certain Lenders of the Company entered into an Inter-Creditor Agreement (ICA) to arrive at the debt resolution plan under the circular dated June 7, 2019, issued by the Reserve Bank of India on Prudential Framework for Resolution of Stressed Assets. Lenders have selected Authum Investment and Infrastructure Limited as the successful Bidder to acquire the Company and/or all its assets through a competitive bidding process after several rounds of negotiations between the bidders and the Lenders.

Pursuant to this, Reliance Commercial Finance Limited is a Wholly Owned Subsidiary of Authum.

As per Trendlyne, Authum's 5-day SMA is Rs 353.54, while the 200-Day SMA is Rs 262.8. The stock is defined as an 'expensive rocket'. As per the website, expensive Rocket stocks are those with medium to high durability scores, expensive valuation and high momentum. While these stocks may be gaining, their price makes them relatively expensive for investors to pick up.

Disclaimer

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