
Shares of Authum Investment & Infrastructure Ltd continued their strong upward momentum for the second consecutive session in Tuesday's trade. The stock today jumped 17.90 per cent to hit a day high of Rs 569. At today's high, the scrip has gained 41.47 per cent in just two days. The multibagger counter has ascended by more than 200 per cent in the last six months. Going by 5-year returns, the share price has skyrocketed by around 27,500 per cent.
The spike in Authum's share price came after a large trade. In a notification to exchanges, the company said its promoter group Mentor Capital has bought 52 lakh shares at a price of Rs 398.70 apiece, while Nariman Investment Holdings offloaded the exact amount of shares at the same rate.
Bourses BSE and NSE have put the securities of Authum under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 69.22. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 37.52 against a price-to-book (P/B) value of 2.74.
The scrip has a one-year beta of 1.88, indicating high volatility. Analysts largely suggested that the stock looked 'bullish' on daily charts.
"Authum Investment looks bullish on the daily charts with strong support at Rs 482.6. A daily close above resistance of Rs 515 could lead to target of Rs 565 in the near term," said AR Ramachandran from Tips2trades.
"The share price is looking bullish on daily charts. The technical parameters are in support of the trend with the long term moving averages are trading below the stock price. The stock may touch the levels of Rs 580 in near term," said market expert Ravi Singh.
In the June 2023 quarter, the company reported a net profit of Rs 32.59 crore as against a loss of Rs 134.28 crore in the March quarter. Its revenue from operations stood at Rs 61.06 crore in the June quarter against a negative income of Rs 118 crore in the previous quarter.
Authum, formerly known as Pentium Investments and Infrastructures, is a non-banking finance company (NBFC). It invests in shares and securities, and real estate; and trades in equities and stock markets. It is also involved in private equity (PE) investments, structured financing, fixed returns portfolios, and secured lending activities, as well as in the provision of debt instruments.
Meanwhile, Indian equity benchmarks fell sharply in early trade today, dragged by banks, financials, automobile, pharma and energy shares. Broader market (mid- and small-cap) shares last seen trading on a mixed note today.
(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)