Headline: Aurum Proptech’s Stock Soars 1335% in Less Than 4 Years – Will the Momentum Continue?

Aurum Proptech, a leading property technology company, has seen its shares soar in recent years, giving investors impressive returns. Since January 2021, the share price has jumped from ₹11.25 to ₹161.75, a gain of 1335%.

Tech Solutions and Platforms

The company offers various tech solutions and platforms to digitize different parts of the real estate process. These include renting, buying, lending, investing, and distribution, using advanced algorithms, data analytics, and automation to make property transactions easier, improve market analysis, and optimize property management.

Financial Results

Recently, Aurum announced its financial results for the June quarter, showing a 47% increase in revenue compared to last year, reaching ₹65 crore. The Revenue as a Service (RaaS) segment, which includes rental businesses like HelloWorld and Nestaway and distribution entities such as Beyondwalls and Aurum Analytica, grew by 53.4% year-over-year.

In contrast, the Software as a Service (SaaS) segment, which includes Sell.Do and other product solutions, saw a 4% year-over-year increase. Despite the revenue growth, the company reported a net loss of ₹11 crore.

Revenue Growth

Aurum expects to keep growing its revenue by over 45%, mainly driven by its rental segment, which makes up 60% of its revenue. The company originally planned to have 50,000 rental units under management by FY27 but now expects to reach this goal sooner thanks to better integration of its business units, including data sharing and cross-selling.

For Q2 and Q3 FY25, Aurum Proptech has several key priorities across its segments. In the rental segment, the company plans to pilot short-stays through HelloWorld to maximize revenue during off-peak periods and will continue strategic supply acquisitions in high-demand areas throughout the year.

Technology Enhancement

Additionally, Nestaway will enhance its technology platform with AI-driven match-making features. In the distribution segment, Aurum Analytica will establish new offices in Ahmedabad, Bengaluru, Hyderabad, and Lucknow, while Sell.Do will intensify its efforts on branding and partnership initiatives to drive growth.

Regarding Capital, WiseX is set to apply for an SM REIT license, and Integrow will introduce a new residential fund offering broader investment options, the company said.

Sustained Growth and Decreasing Losses

Domestic brokerage Dolat Capital, noting the company’s sustained growth and decreasing losses, expects Aurum to continue its strong performance and maintain a focus on unit economics. Dolat Capital forecasts reduced losses for FY25/26 and has revised its EPS estimates by 16.8% and 2.7%, respectively.

The brokerage retains its ‘buy’ rating with a discounted cash flow-based target price of ₹250, implying an EV/Sales multiple of 2.3x on FY26 sales.

Looking ahead, the Indian PropTech industry holds significant potential, with the Indian real estate market expected to reach USD 1 trillion by 2030. Aurum anticipates that PropTech will contribute USD 100 billion to this growth.