Multibagger Stock: Soared 1335% in Under 4 Years; Can It Sustain the Momentum?

A leader in property technology, has seen its stock soar in recent years, delivering exceptional returns to shareholders. Since January 2021, the share price has skyrocketed from ₹11.25 to its current value of ₹161.75, marking an impressive 1335% gain.

The company offers a comprehensive range of tech solutions and platforms that digitize various aspects of the real estate value chain. These solutions cover rental, purchase, lending, investing, and distribution. By utilizing advanced algorithms, data analytics, and automation, Aurum Proptech streamlines property transactions, enhances market analysis, and optimizes property management processes. In the June quarter, the company announced a 47% year-over-year increase in revenue, reaching ₹65 crore. The Revenue as a Service (RaaS) segment, which includes rental businesses like HelloWorld and Nestaway, as well as distribution entities such as Beyondwalls and Aurum Analytica, grew by 53.4% YoY. The Software as a Service (SaaS) segment, which includes Sell.Do and other product solutions, saw 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 due to 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 maximize 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 matchmaking 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 will apply for an SM REIT license, and Integrow will introduce a new residential fund offering broader investment options. 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.