When Will Aurum PropTech Limited (NSE:AURUM) Turn A Profit?

Aurum PropTech Limited (NSE:AURUM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Aurum PropTech Limited engages in the business of software development for the real estate and other services in India. The ₹18b market-cap company’s loss lessened since it announced a ₹558m loss in the full financial year, compared to the latest trailing-twelve-month loss of ₹306m, as it approaches breakeven. Many investors are wondering about the rate at which Aurum PropTech will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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Aurum PropTech is bordering on breakeven, according to some Indian Software analysts. They expect the company to post a final loss in 2026, before turning a profit of ₹215m in 2027. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 86%, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Aurum PropTech's upcoming projects, but, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for Aurum PropTech

One thing we would like to bring into light with Aurum PropTech is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Aurum PropTech's case is 65%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Aurum PropTech, so if you are interested in understanding the company at a deeper level, take a look at Aurum PropTech's company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Valuation: What is Aurum PropTech worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Aurum PropTech is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Aurum PropTech’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.