Aurum Proptech (AURUM)
Fast GrowerFairStock Score: 30/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹220.47 |
| Market Cap | ₹1,691.8 Cr |
| P/E Ratio | 29.24 |
| ROCE | -2.83% |
| ROE | 0.49% |
| Dividend Yield | 0% |
| Profit Growth | 143.33% |
| Debt/Equity | 0.44 |
| Sales Growth | 63.5% |
| Promoter Holding | 47.37% |
| 52-Week Range | ₹151.9 — ₹264.1 |
| Sector | IT - Services |
| Book Value | ₹82.14 |
Strengths
- Revenue growth of 77.79% shows strong top-line momentum.
- Profit growth of 143.33% indicates an improving earnings trend, albeit from a very low base.
- Debt/Equity of 0.44 is manageable for an IT-enabled services company.
- Promoter holding of 47.37% aligns promoter interests with minority shareholders.
- Piotroski F-Score of 6/9 suggests modest financial health.
Concerns
- ROE of 0.49% and negative ROCE of -2.83% show capital is not being productively deployed.
- Latest quarter net profit of ₹3 Cr on sales of ₹115 Cr is a razor-thin margin with no safety cushion.
- P/B of 4.01 and P/E of 0.00 mean the price is far ahead of book value and visible earnings.
- Zero dividend yield and a FairStock Score of 11/100 make it a highly speculative investment.
AI Analysis
Let me be honest: when I look at Aurum, I don't see a value investment; I see a rapid growth story with no current earnings to support the price. Sales rose 77.79% and reported profit rose 143.33%, but the latest quarter tells the real story—₹115 crore in sales produced only ₹3 crore of net profit. That is a razor-thin margin. The return on equity is just 0.49%, and the return on capital employed is negative at -2.83%. By Graham's yardstick, these numbers don't pass the profitability test. The book value is ₹47.29, so paying ₹189.55 means buying at 4.01 times book for a business earning almost nothing on that book. That leaves no margin of safety. The P/E column showing 0.00 is an emblem of how speculative this is—there is no reliable earnings stream to appraise. I do give credit for a debt/equity ratio of 0.44, which is manageable, and promoter holding of 47.37%, indicating skin in the game. The Piotroski score of 6/9 is moderately reassuring. But with no dividend yield, shareholders are relying entirely on dreams of future profitability. The FairStock Score of 11/100 reinforces my concern. Mr. Market is asking me to pay for a great business, but the financials show a weak one. Growth without profits is not value; it is anticipation. If Aurum can convert its strong sales growth into genuine margins and positive ROCE, I'll revisit. Until then, I would watch from the sidelines.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer