Awfis Space Solutions shares poised for 44% growth, target price raised to Rs 1,049: ICICI Securities
Awfis Space Solutions’ unique business model, domestic brokerage firm ICICI Securities has reiterated its ‘buy’ call on the stock with a revised target price of Rs 1,049 (up from Rs 979), indicating an upside potential of 44%.
“Awfis has a unique business model. While the company does not act as a land aggregator or landlord of office spaces, it focuses on providing services to its clients on demand side and also partners with space owners/landlords on supply side. With Awfis being the first co-working/flexible workspace company in India, there is also limited scope for comparison with industry peers. Hence, we believe Awfis is more comparable to listed hotel peers,” said ICICI in its note.
In comparison with its listed hotel peers, the domestic brokerage firm stated it believes that given Awfis’ superior RoCE profile, which is likely to consistently range over 50% FY26E onwards and net cash balance sheet combined with an estimated 53% EBITDA CAGR over FY24–27E, an EV/EBITDA of multiple of 25x is justified in line with hotel peers.
Awfis Space Solutions is expected to deliver a 31% revenue CAGR over FY24-27E, driven by seat expansion across cities. ICICI Securities projects a 53% EBITDA CAGR during the same period, with margins improving from 9.2% in FY24 to 14.6% by FY27E, aided by operational scale, rising non-seat revenue, and cost optimization in existing centers.
“Owing to the competitive nature of India’s co-working/flex spaces market and as flex operators expand into tier-II cities as well, we believe
