Multibagger Stock: Aurum Proptech yielded 1335% returns in less than 4 years; can it keep the momentum going?

Aurum Proptech, a leader in property technology, has seen its shares experience a significant rise in recent years, delivering exceptional returns to shareholders. Since January 2021, the share price has surged from ₹11.25 to its current value of ₹161.75, marking a remarkable gain of 1335%.

The company offers a comprehensive range of tech solutions and platforms designed to digitise various aspects of the real estate value chain. These solutions cover rental, purchase, lending, investing, and distribution, using advanced algorithms, data analytics, and automation to streamline property transactions, improve market analysis, and optimise property management processes.

The company recently announced its financial results for the June quarter, revealing a 47% year-over-year increase in revenue, reaching ₹65 crore. The Revenue as a Service (RaaS) segment, encompassing various rental businesses like HelloWorld and Nestaway, as well as distribution entities such as Beyondwalls and Aurum Analytica, grew by 53.4% YoY.

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

Aurum has maintained its revenue growth forecast of over 45%, driven primarily by its rental segment, which represents 60% of revenue. The company initially projected rental units under management to reach 50,000 by FY27, but now expects to achieve this milestone earlier with improved integration of its business units, including data pooling and cross-selling.

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

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. 

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.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.