Aurum PropTech (NSE:AURUM) swells 15% this week, taking one-year gains to 97%

The simplest way to invest in stocks is to buy exchange traded funds. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Aurum PropTech Limited (NSE:AURUM) share price is up 97% in the last 1 year, clearly besting the market return of around 17% (not including dividends). So that should have shareholders smiling. It is also impressive that the stock is up 54% over three years, adding to the sense that it is a real winner.

Since the stock has added ₹3.8b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

View our latest analysis for Aurum PropTech

Aurum PropTech isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last twelve months, Aurum PropTech's revenue grew by 36%. We respect that sort of growth, no doubt. While the share price performed well, gaining 97% over twelve months, you could argue the revenue growth warranted it. If the company can maintain the revenue growth, the share price could go higher still. But it's crucial to check profitability and cash flow before forming a view on the future.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at Aurum PropTech's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Aurum PropTech shareholders have received a total shareholder return of 97% over one year. Having said that, the five-year TSR of 138% a year, is even better. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Aurum PropTech , and understanding them should be part of your investment process.

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Indian exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.