Small-cap stocks have performed exceptionally in 2023 so far, having beaten large-cap peers by delivering multibagger returns and setting new record highs. Authum Investment & Infrastructure (Authum) was one such stock that delivered staggering returns to its shareholders.
From its COVID low of ₹3.83, the stock has skyrocketed as much as 11832 percent to currently trade around ₹457. An investment of ₹1 lakh at that point would have turned to over ₹1.19 crore today.
Meanwhile, from its recent low of ₹154.50, hit in February 2023, the company's shares have also given multibagger returns, surging almost 196 percent. Earlier last month, on August 8, 2023, the stock also hit its record high of ₹580. However, since hitting its peak, the stock has consolidated a bit and has lost over 21 percent.
Over the past three calendar years as well, the stock has soared 4032 percent. Whereas, it has advanced 98 percent in the last 1 year and 103 percent in 2023 YTD.
In the 9 months of 2023 (considering September so far), the stock gave positive returns in six and was in the red in three months. It gave double-digit returns in all six months it was in the green.
It has shed over 5 percent in September so far, snapping after 6 straight months of gain. It rose 27.3 percent in August, 11.8 percent in July, 18.4 percent in June, 30.15 percent in May, 12.8 percent in April and 10.65 percent in March.
However, it fell in the first two months of this year, down 7.7 percent in February and 14.43 percent in January.
Authum is a non-banking finance company that engages in various investment and financial activities in India. The company invests in shares and securities, and real estate; and trades in equities and stock markets. It is also involved in private equity investments, structured financing, fixed returns portfolios, and secured lending activities, as well as the provision of debt instruments. The company was formerly known as Pentium Investments and Infrastructures and incorporated in 1982.
Last month, Sanjay Dangi promoted NBFC Authum Investments & Infrastructure has invoked guarantees issued by Reliance Infrastructure (RInfra) and Reliance Power (RPower) to the erstwhile Reliance Commercial Finance Ltd (RCFL) and Reliance Home Finance Ltd (RHFL) and converted ₹1043 crore debt of the two companies into equity.
In the June quarter, the company turned positive and posted a net profit of ₹32.5 crore as against a loss of ₹134 crore in the March 2023 quarter. Similarly, its revenue came in at ₹61 crore in the quarter under review versus -118 crore in the previous quarter.
Despite the stellar return, it is important to note that small-cap stocks are high-risk stocks and not suitable for investors with a risk-averse approach.
Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.