Awfis Space - Consistent Compounder ‘Flex-ing’ Its Wings; ICICI Securities Initiates With An Add Rating

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..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. We believe given Awfis’ superior return on capital employed profile which is likely to consistently range over 20% FY26E onwards and net cash balance sheet combined with an estimated 48% Ebitda CAGR over FY24-27E, an enterprise value/Ebitda of multiple of 25 times is justified in line with hotel peers. We initiate coverage on Awfis with Add rating; based on 25 times June-26E IND-AS 116 Ebitda of Rs 2.0 billion and adding net cash of Rs 1.7 billion, we derive an equity value of Rs 52.5 billion or Rs 757/share. Key risks: Slowdown in overall office leasing across India and pricing competition among co-working flexible workspace operators..Click on the attachment to read the full report:.Transport Corporation Of India - A Stable Play; ICICI Securities Initiates Coverage With A Buy.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Awfis Space - Consistent Compounder ‘Flex-ing’ Its Wings; ICICI Securities Initiates With An Add Rating

With Awfis being the first co-working/flexible workspace company in India, there is also limited scope for comparison with industry peers, says the brokerage.

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Awfis Space - Consistent Compounder ‘Flex-ing’ Its Wings; ICICI Securities Initiates With An Add Rating

With Awfis being the first co-working/flexible workspace company in India, there is also limited scope for comparison with industry peers, says the brokerage.

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