Awfis Space Solutions - Compounding Story On Track: ICICI Securities

ICICI Securities Report

Awfis Space Solutions Ltd. has a unique business model. While the company does not act as a land aggregator or landlord of office space, 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.

Given Awfis’ superior RoCE profile, which may consistently range over 40% FY26E onwards and net cash balance sheet combined with an estimated 48% Ebitda CAGR over FY24-27E, we believe an enterprise value/Ebitda of multiple of 26 times (earlier 25 times) is justified in line with hotel peers.

We upgrade our rating to Buy from Add with a revised target price of Rs 839/share (earlier Rs 757) based on 26 times Sep’26E IGAAP Ebitda of Rs 2.2 billion (earlier Jun’26E IGAAP Ebitda) and adding net cash of Rs 1.7 billion.

Key risks: Slowdown in overall office leasing across India and pricing competition among co-working flexible workspace operators.

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