AIIL - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Rating: 4.5

Authum Investment & Infrastructure Ltd (AIIL) shows strong fundamentals and technical momentum, making it a compelling candidate for long-term investment. Let’s break it down

🧠 Fundamental Analysis

Valuation

Stock P/E (11.8) vs Industry P/E (25.2) → Undervalued

Price to Book (≈3.27) → Reasonable for a high-growth NBFC

PEG Ratio: Not provided, but high EPS and low P/E suggest favorable growth-adjusted valuation

Profitability

ROE (33.9%) and ROCE (30.7%) → Exceptional returns on capital

EPS (₹241) → Strong earnings base

Dividend Yield (0.04%) → Minimal, but typical for growth-focused firms

Financial Health

Debt to Equity (0.05) → Virtually debt-free

FII/DII Holding: Slight uptick in institutional interest

📈 Technical & Trend Indicators

Current Price (₹2,826) is above both DMA 50 (₹2,538) and DMA 200 (₹1,983) → Strong bullish trend

RSI (58.9) → Neutral zone, no overbought signal

MACD (75.0) → Bullish momentum

Volume is below average → Watch for confirmation on breakout

🏁 Ideal Entry Price Zone

Given the strong fundamentals and technical breakout

₹2,600–₹2,750 is a good accumulation zone

If price dips toward DMA 50, it offers a lower-risk entry

🧳 Exit Strategy / Holding Period

If you already hold the stock

Holding Period: Minimum 5–7 years to capture compounding returns

Exit Strategy

Partial exit if price exceeds ₹3,500–₹4,000 and valuation becomes stretched

Hold if ROE/ROCE sustain and earnings growth continues

Reassess if price drops below ₹2,400 or if quarterly profits continue to decline

🔮 Long-Term Outlook

AIIL has delivered 209% CAGR profit growth over 5 years

1

Forecasts suggest potential upside of 50–60% over the next 12–18 months

2

Machine learning models predict targets of ₹6,300+ by 2026 and ₹10,000+ by 2027

2

🧪 Final Verdict

AIIL is a high-quality, undervalued NBFC with stellar capital efficiency and strong long-term growth potential. Ideal for patient investors seeking multibagger returns.

Would you like a peer comparison with other NBFCs like Bajaj Finance or Muthoot?

1

www.screener.in

2

stockpricearchive.com

Edit in a page