AIIL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 How I’m Thinking About This

You’re asking for a full-spectrum fundamental analysis of Authum Investment & Infrastructure Ltd (AIIL). I’m weighing its financial strength, valuation metrics, business model, and technical signals to determine whether it’s a strong long-term investment and where to enter if undervalued.

📊 Core Financials Breakdown

Profitability & Growth

EPS: ₹241 — extremely strong earnings base

PAT Qtr: ₹941 Cr vs ₹1,766 Cr — -13.9% QoQ, but still robust

ROE: 34.1%, ROCE: 30.8% — elite-level returns

Debt & Cash Flow

Debt-to-equity: 0.06 — near debt-free

Cash flows are healthy, supported by strong earnings

💰 Valuation Indicators

Metric Value Interpretation

P/E Ratio 13.3 Undervalued vs industry PE of 24.0

P/B Ratio ~3.72 Slight premium to book value

PEG Ratio 0.16 Deep value — strong earnings vs price

Intrinsic Value ~₹3,400–₹3,600 Slightly undervalued at current price

PEG ratio and P/E suggest significant upside potential, especially given high ROE and ROCE.

🏭 Business Model & Competitive Edge

Industry: NBFC — capital allocation and investment-driven

Moat: Strategic acquisitions (e.g., Prataap Snacks, NITCO) and high-margin investment returns

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Momentum: 5-year return of 4069.1%, profit margin ~88.3%

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Institutional Interest: FII/DII holdings increasing — confidence building

📉 Technical & Entry Zone

Current Price: ₹3,199

DMA 50/200: Trading well above both — strong bullish trend

MACD: +85.2 — strong upward momentum

RSI: 59.5 — neutral to bullish

📌 Suggested Entry Zone: ₹3,050–₹3,150

This range offers a good margin of safety and aligns with recent support levels

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🕰️ Long-Term Holding Guidance

Hold if already invested — fundamentals are exceptional

Buy on dips near ₹3,100 for long-term compounding

2026 Target Price: ₹4,769–₹4,903 based on technical projections

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⭐ Fundamental Rating

4.7

Exceptional return metrics, low debt, and undervaluation make AIIL a compelling long-term pick. Let me know if you’d like a breakdown of its acquisition strategy or peer comparison.

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