Down 33% from 52 wk high! Brokerages see up to 60% upside n the Ashish Kacholia stock

Brokerage firms continue to remain positive on Awfis Space Solutions, which made its stock market exactly one year ago, on May 30, 2024. The workspace solutions provider had delivered Multibagger returns to the investors during the period but is currently 33 per cent down from its 52-week high. Marquee investor Ashish Kacholia continues to hold this stock as of March 2025 quarter.

Awfis Space Solutions reported a sharp rise in quarterly profit and strong revenue growth, supported by operational efficiency and the performance of its coworking and allied services business. Its net profit surged over nine-fold to Rs 11.3 crore for the quarter ended 31 March, 2025.

Shared workspace providers’ operating revenue rose 46 per cent YoY to Rs 339 crore. Awfis operated in 18 cities with 208 active centres, hosting over 134,000 seats and covering a chargeable area of 7.8 million sq ft, as of 31 March,

Awfis reported strong 4Q performance. I-GAAP equivalent adjusted Ebitda came-in 11 per cent ahead of estimates with strong 14.2 v margins. For FY25, Awfis delivered revenue growth and Ebitda margin improvement which was well ahead of its guidance, said IIFL Securities in its note.

For FY26, management has again guided for 40,000 seat addition and 30 per cent revenue growth with largely stable I-GAAP margins. Awfis has decided to foray into furniture manufacturing business to reduce its centre setting-up costs. We build 30 per cent and 43 per cent revenue and Ebitda CAGR over FY25-27,” it added with a ‘buy’ rating and a target price of Rs 925 per share.

Shares of Awfis Space Solutions Ltd settled at Rs 646.50 on Friday, rising nearly 2 per cent for the day, commanding a total market capitalization of more than 4,500 crore. The stock has dropped about 33 per cent from its 52-week high at Rs 945.70, hit in August 2024.

Awfis Space Solutions delivered another strong quarter with Q4FY25 revenue growth, overall occupancy at 73 per cent and mature centre occupancy at 84 per cent. t clocked IGAAP Ebitda of Rs 170 crore with Ebitda margin of 13.9 per cent, said Awfis had 134,121 operational seats as of March 2025, and is on track to reach over 170,000 operational seats by March 2026, said ICICI Securities  

“It guides for FY26 revenue growth of 30 per cent, in line with our estimates and marginal increase in IGAAP EBITDA margin. We estimate it to deliver 33 per cent IGAAP EBITDA CAGR over FY25-27E and retain ‘buy’ with a revised target price of Rs 1,019, based on 23x Mar’27E IGAAP Ebitda of Rs 300 crore and adding net cash of Rs 230 crore,” it added, citing 60 per cent upside.

Seasoned Dalal Street investor Ashish Kacholia owned 17,82,612 equity shares, or 2.51 per cent stake, in Awfis Space Solutions as of March 31, 2025. His stake in the company is currently valued at Rs 115.25 crore.

However, Choice Broking has downgraded the stock to ‘add’ from ‘buy’ and cut its target price to Rs 750 from Rs 860 it factors in slowing growth in seat addition. “We struggle to find a clear moat for its business model. Slowing demand from GCC and startups, decrease in blended occupancy levels and increasing competition from developers and peers are risks to our rating,” it said.

“There is a long tail of competitors (WeWork India, Tablespace, EFC, Redbricks, BHIVE, Indiqube etc) in the organized and unorganized segment which could compete aggressively with Awfis. There is also an increasing likelihood of large developers in India who may foray into the Flex Space Market as this would be a related business for them,” Choice said.

Awfis Space Solutions raised a total of Rs 598.93 crore via its IPO in May 2024, issuing shares for Rs 383 apiece with a lot size of 39 equity shares. The stock is currently up 69 per cent from its IPO price. Since its 52-week high, the stock had zoomed nearly 150 per cent in just 3 months of listing.