IIFL Securities Launches ‘Buy’ in Awfis, Sees 40% Rise

PT represents an upside of around 40% from the company’s closing price of INR 700.75

The firm has given a price target (PT) of INR 980 on Awfis shares

It was also stated that the company’s EBITDA margins showed improvement in the first two quarters and first half of the ongoing financial year.

Brokerage firm IIFL Securities starts coverage of co-working space initiative avfis with a ‘buy’ rating. The firm has given a price target (PT) on Awfis shares of INR 980, which should be achieved within 12 months.

PT represents an upside of around 40% from the company’s closing price of INR 700.75.

IIFL Securities said it is forecasting a (CAGR) of close to 55% on the hard PT rationale.compound annual growth rate Growth in Awfis (EBITDA) earnings before interest, taxes, depreciation and amortization and a sharp improvement in return on equity (ROE) between the FY24 and FY27 time frame.

It was also stated that the improvement in the company’s EBITDA margins in the first two quarters and in the first half of the ongoing fiscal year FY25 was above management’s estimates.

Additionally, IIFL observed that Awfis is the “first and only listed pure play” in the flexible workspaces segment and believes its space share will grow up to 12% by FY27.

“During FY24-27, an EBITDA of 58% was driven by a CAGR of 33% in seat addition, occupancy management and operating leverage, which drove steady improvements in EBITDA margins and doubled revenues from design and construction work and other ancillary services.” We will generate CAGR,” the brokerage said in its report.

It is worth noting that Awfis, which was listed in May, has been largely in a bull run for most of the year. Its shares gained nearly 60% from the list price of INR 432.25.

(The story will be updated shortly.)