1. At a Glance – The NBFC That Moonwalked Into Q3
Avonmore Capital & Management Services Ltd is currently trading at ₹15.2 with a market cap of ₹430 crore. The stock is down 19.1% in 3 months and 23% over 1 year — so clearly, Mr. Market is not impressed.
But then Q3 FY26 walks in and drops a ₹15.28 crore quarterly profit. Revenue? ₹53.86 crore.
Quarterly profit growth? A jaw-dropping 3,721% YoY.
P/E stands at 18.7, almost hugging the industry median of 17.7. Book value is ₹13.4 and the stock trades at 1.13x book. ROCE is 10.6%, ROE is 8.59%. Debt-to-equity? Just 0.07.
Company claims it’s “almost debt free.” True. But the bigger question is — what exactly is driving this profit jump? Sustainable earnings? One-off gains? Accounting acrobatics?
This NBFC doesn’t just lend money. It does advisory, broking, PE, infrastructure consultancy, healthcare, real estate, commodity trading — basically, if there’s a sector, they have a toe in it.
Is this diversification or corporate FOMO?
Let’s investigate.
2. Introduction – The Many Lives of Avonmore
Incorporated in 1992, Avonmore Capital is registered as a Non-Systematically Important Non-Deposit Taking NBFC. Which basically means:
“We’re an NBFC, but not systemically important enough to break the economy.”
The company provides:
- Loans & advances
- Advisory services
- Equity broking
- Wealth management
- Infrastructure consultancy
- Commodity trading
- Real estate services
- Even healthcare diagnostics
Yes. From lending money to eye treatment.
Revenue breakup FY23 tells you the story:
- Interest income: 5%
- Fees & commission: 29%
- Other operating income: 64%
- Other income: 2%
Translation: This is not a typical lending-heavy NBFC.
Segment revenue FY23:
- Investment activities: 60%
- Consultancy & advisory: 24%
- Debt/equity market ops: 5%
- Wealth advisory: 5%
- Finance activities: 4%
- Healthcare: 2%
So it’s basically an investment-driven advisory hybrid.
And then comes corporate drama:
- Buyback in July 2022
- Preference share issue of ₹12 crore
- Registered office shift from Delhi to Maharashtra
- NSE listing approval Jan 2023
- Acquisition of Almondz Finanz
- Composite scheme demergers
- Preferential warrants
- Rights issue
- Proposed warrant withdrawal
- ₹70.79
