Awfis Space Solutions share price lists below market expectations. Buy, sell or hold?

Awfis Space Solutions share price: Despite market expectations of listing premium above 30 percent against the upper price band of ₹383, Awfis Space Solutions share price opened on BSE at ₹432.25 per share whereas it listed on NSE at ₹435 apiece, delivering slightly above 13 percent listing gain to the lucky allottees. However, after the positive listing of Awfis Space Solutions shares, the newly listed scrip witnessed fresh buying. This helped Awfis Space Solutions share price to sustain above the listing price.

According to stock market experts, Awfis Space Solutions Limited is the number one company among the top five benchmarked players in India in the flexible workspace segment. Market experts believe the company may turn net cash positive by the next fiscal year. They advised lucky allottees to hold the scrip with a trailing stop loss at ₹400 for more upside.

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Prashanth Tapse, Senior VP — Research at Mehta Equities, confidently justifies the positive debut of Awfis Space Solutions shares, stating, "The healthy listing is a testament to the company's success, ranking no 1 among the top 5 benchmarked players in India in the flexible workspace segment. Despite challenges, the management's confidence in turning net cash positive by the next fiscal year is reassuring. They foresee a bright future, driven by the significant demand and supply gap in the flexible workspace segment in which Awfis operates."

Awfis Space Solutions share price outlook

Advising long-term investors to hold the scrip, VLA Ambala, Co-founder of Stock Market Today, said, "While the company's net profit is negative and total borrowing has grown by 4x between 2021 and 2023, its revenue surged by 103% and PAT rose by 18.4% between FY2022-23."

"The company aims to provide well-suited solutions tailored to meet the needs of its diverse clientele, which spans different demographics, seat cohorts, and industry sectors. Their suite of flexible workspace solutions encompasses space solutions such as Awfis Transform and Awfis Care. Given its unique product profile and promising growth prospects, the company presents an attractive proposition. The company's capital expenditure per seat was around Rs. 50,000 in FY22 and FY23, and the first nine months ended December 31, 2023. In comparison, the average capital expenditure per seat in 2023 by top operators in India typically ranged between Rs. 80,000 and Rs. 200,000.

"Awfis Space Solutions has demonstrated a robust Return on Capital Employed (ROCE) of 25.3% in FY23. Despite steady growth in its top line, the company has managed to reduce its losses. This positive trend indicates the company's potential for future profitability. We therefore recommend that investors who have received allotment hold shares from a long-term perspective," advised Shreyansh V Shah, Research Analyst at StoxBox.

Awfis Space Solutions share price target

Prashanth Tapse of Mehta Equities reiterates his recommendation for allotted investors, stating, “We advise allotted investors to book 50% profits today and hold the rest for the short term. Our target for the short term is set at ₹470 to ₹500 with a stop loss below ₹412. This guidance is aimed at providing investors with a clear direction for their investment decisions.”

VLA Ambala of Stock Market Today advised Awfis Space Solutions shareholders to hold the scrip for the ₹520 target, maintaining a stop loss at ₹400 per share.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.