Multibagger alert: Awfis Space Solutions zooms 17% to hit all-time high, gains 120% from IPO price in over 2 months

Multibagger alert: Awfis Space Solutions share price skyrocketed by more than 17% during Thursday's session, reaching an all-time high at ₹925.25 apiece on BSE following the company's announcement of the opening of two new centres at Mantri Commerce and Vista Pixel in Bengaluru. These centres, offering 39,000 sq. ft. and 27,846 sq. ft. of built-up areas respectively, mark an expansion of Awfis' presence and the availability of high-quality workspace solutions in prime locations, as per company's exchange filing. Awfis Space Solutions share price today opened at ₹801.95 apiece on BSE, the stock touched an intraday low of ₹801.75 per share.

“Awfis Space Solutions share price is currently trading in a steep uptrend and well placed above short-term moving average. By combining price action and other momentum indicators, it is likely that stock may continue its northward journey. One can stay positively biased till stock is well trading above the ₹700-720 zone,” said Dr. Ravi Singh, SVP - Retail Research, Religare Broking Ltd.

The share price of Awfis Space Solutions has increased by more than 120% from its initial public offering (IPO) price of ₹383. Awfis Space Solutions shares had a successful start on the stock exchanges on May 30, 2024, with an opening price of ₹435 per share on NSE, representing a 13.58% increase from the issue price of ₹383. Meanwhile, on BSE, the share price of Awfis Space Solutions opened at ₹432.25 per share, reflecting a 12.86% rise from the issue price.

As per company's latest exchange filing, the largest co-working network in the nation has been developed by Awfis, a pioneer in the co-working space. The corporation employs 1,12,038 people in 185 locations as of June 2024, occupying 5.6 million square feet spread over 17 cities. With 64% of its centers and 67% of its seats focused in its Managed Aggregation (MA) model, Awfis has consistently maintained a strong focus on an asset-light and risk-averse strategy. Awfis may minimise risk and optimise return on investment using this method.

In the upcoming years, Awfis aims to increase its footprint in India by introducing 40,000 additional seats in FY25, raising the total to 135,000 seats by the conclusion of the fiscal year. This expansion corresponds with the rising need for adaptable work environments and positions Awfis to sustain its market dominance.

ICICI Securities retains 'Add' rating on the stock

The report from the brokerage mentioned that in Q1FY25, the company's consolidated revenue reached ₹260 crore, marking a 37% year-on-year increase and an 11% quarter-on-quarter increase, with an overall occupancy rate of 71% and a mature centre occupancy of 84% (for centers operating for more than 12 months). Additionally, the company added a net total of 5,368 seats and nine new centres in Q1.

"With an overall operational + committed pipeline of 127,726 seats (over 100,000 operational), we expect continued growth going ahead. We estimate 35% operational seat CAGR, 31% revenue CAGR and 48% IGAAP EBITDA CAGR (EBITDA post lease payments) over FY24- 27E. We retain ADD," the brokerage said.

The brokerage's target price of ₹757 for the stock has already been exceeded.

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