Multibagger alert: After the firm announced the establishment of two new centres at Mantri Commerce and Vista Pixel in Bengaluru, the share price of Awfis Space Solutions soared by more than 17% during Thursday’s session, hitting an all-time high at ₹925.25 apiece on the BSE. According to the company’s exchange filing, these centres, which have built-up sizes of 39,000 and 27,846 square feet, respectively, represent an expansion of Awfis’ presence and the provision of premium workplace solutions in desirable locations. The opening price of Awfis Space Solutions shares on the BSE was ₹801.95, with the stock reaching an intraday low of ₹801.75 per share.
“Awfis Space Solutions share price is currently trading in a steep uptrend and well placed above the short-term moving average. By combining price action and other momentum indicators, the stock may likely continue its northward journey. One can stay positively biased till stock is well trading above the ₹700-720 zone,” said Dr Ravi Singh, SVP – Retail Research, Religare Broking Ltd.
Since Awfis Space Solutions’ ₹383 initial public offering (IPO), its share price has surged by more than 120%. On May 30, 2024, Awfis Space Solutions shares opened at ₹435 per share on the NSE, a 13.58% rise from the issue price of ₹383. The company’s stock market debut was a triumph. Awfis Space Solutions’ share price opened at ₹432.25 on the BSE, representing a 12.86% increase from the issue price.
According to the company’s most recent exchange filing, Awfis, a pioneer in the co-working arena, has created the largest co-working network in the country. As of June 2024, the corporation operated in 185 locations with 1,12,038 employees, occupying 5.6 million square feet across 17 cities. Awfis has continuously maintained a strong focus on an asset-light and risk-averse strategy, with 64% of its centres and 67% of its seats concentrated in its Managed Aggregation (MA) model. With this approach, Awfis may reduce risk and maximize return on investment.
Awfis intends to expand its presence in India in the future years by adding 40,000 more seats in FY25, bringing the total to 135,000 seats by the end of the fiscal year. This growth places Awfis in a position to maintain its market leadership and aligns with the growing need for flexible work environments.
ICICI Securities retains ‘Add’ rating on the stock
According to the brokerage’s report, the company’s consolidated revenue in Q1FY25 was ₹260 crore, up 37% year over year and 11% quarter over quarter. Its occupancy rate overall was 71%, and its mature centre occupancy was 84% (for centres open for more than a year). In Q1, the company also added nine new centres and a net total of 5,368 seats.
“With an overall operational + committed pipeline of 127,726 seats (over 100,000 operational), we expect continued growth going ahead. We estimate 35% operational seat CAGR, 31% revenue CAGR and 48% IGAAP EBITDA CAGR (EBITDA post lease payments) over FY24- 27E. We retain ADD,” the brokerage said.
The firm has already surpassed its target price of ₹757 for the stock.
