Rally Continues: Sammaan Capital Shares Hit Fresh Highs
Sammaan Capital’s stock extended its rally on October 1, with the scrip rising for the sixth straight session and closing at ₹168.55, up 4.8%. In just six trading days, the stock has gained more than 25%, marking the kind of velocity not seen since June 2024 when the counter closed higher for nine consecutive sessions. The latest move underscores a shifting investor mood as the NBFC peers report improving fundamentals alongside strategic corporate actions.
Market watchers note that the broader narrative around Sammaan Capital has shifted from merely tracking loan book growth to watching for signals of capital-raising and sustainable profitability. The combination of a favorable fundraising outlook, a visible path to faster AUM expansion, and improving credit metrics is central to why the stock has been trending higher lately.
What’s Driving the Surge?
1) Board Meeting on Fundraising Plans
A key catalyst cited by investors is an upcoming board meeting scheduled for October 2. The company has indicated that it will discuss proposals to raise funds through equity securities or other convertible/exchangeable instruments. Such a move could reassure the market about liquidity and the ability to accelerate growth, particularly as the business targets a larger AUM base in the coming years.
2) Block Deal by a Major Mutual Fund
Earlier in the week, ICICI Prudential Mutual Fund reportedly purchased 42 lakh shares in a block deal, averaging around ₹151.95 per share. While block trades are not uncommon for growing NBFCs, the participation from a reputable mutual fund signals credible demand from long-only investors and can help stabilize sentiment during a period of rapid price movement.
3) Leadership Change and Growth Outlook
Most recently, Sammaan Capital appointed Himanshu Modi as Deputy CEO from September 4, aligning leadership with its growth ambitions. Management has outlined a target to grow the Assets Under Management (AUM) to ₹1 lakh crore by FY27, up from ₹62,378 crore in the first quarter of FY26. The company projects a robust CAGR of about 27% to reach that milestone, suggesting an aggressive but structured expansion path across its credit and non-credit product lines.
4) AUM Composition and Cost of Credit
Currently, legacy book exposure forms a sizable portion of AUM (about 37%). Management plans to bring this down to a single-digit contribution by FY27 as newer products and a broader distribution reach mature. On the cost front, the company has indicated that credit costs could trend toward a steady ~1% in a normalized base, versus 3% logged in the June quarter. Such a shift would bolster profitability if supported by steady credit quality and better risk-adjusted pricing.
5) September Momentum and Market Voodoo
Even before October, the stock had logged roughly a 29% rise in September, one of the strongest monthly gains for the counter since August 2023. It’s notable that the stock remains under the Futures & Options (F&O) ban, which means new derivative positions cannot be created. In practice, this constraint can both shield the rally from rapid speculative leverage and also limit near-term hedging activity, potentially amplifying price moves for the next few sessions.
What This Means for Investors
From an investor viewpoint, Sammaan Capital’s recent trajectory hinges on execution of its fundraising plans, the sustainability of AUM growth, and the stabilization of credit costs. If the board greenlights a well-structured equity or convertible issue and approvals translate into faster capital deployment, the stock’s fundamentals could align with investors’ expectations for faster scale without unduly compromising risk controls.
Despite the positive signals, risks remain. The ongoing F&O ban limits hedging opportunities, and any delay in fundraising or execution risks a sharp pullback should markets reprice growth assumptions. As with any NBFC story tied to aggressive growth aspirations, valuations will need to reflect a realistic path to achieving the stated AUM targets and a credible risk management framework.
Disclaimer: The content reflects market rumors and company statements as reported through public channels. Investors should consult certified financial advisers before making investment decisions.
