Buy Awfis Space Solutions, target price Rs 1,049: ICICI Securities

ICICI Securities has a buy call on Awfis Space Solutions Ltd with a target price of Rs 1049. The current market price of Awfis Space Solutions Ltd is Rs 730.2. Awfis Space Solutions, incorporated in 2014, is a Small Cap company with a market cap of Rs 5123.36 crore, operating in the General sector.

Awfis Space Solutions Ltd key Products/Revenue Segments include Rental Income, Income From Construction Work, Sale of services and Traded Goods for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 301.95 crore, up 12.72% from last quarter Total Income of Rs 267.88 Crore and up 40.31% from last year same quarter Total Income of Rs 215.20 crore. The company has reported net profit after tax of Rs 38.67 crore in the latest quarter.

The company's top management includes Mr.Amit Ramani, Mr.Rajesh Kharabanda, Mr.Arjun Bhartia, Mr.Anil Parashar, Ms.Radhika Jaykrishna, Mr.Sanjay Shah. Company has S R Batliboi & Associates LLP as its auditors. As on 30-09-2024, the company has a total of 7 crore shares outstanding.

Investment Rationale
In H1FY25, Awfis Space Solutions (Awfis) delivered on two of its main FY25 guidance parameters, viz. 30%-plus revenue growth for FY25 and expansion in IGAAP EBITDA margin upwards of 12% (H1FY25 YoY revenue growth of 39% and IGAAP EBITDA margin of 13.3%). With an overall operational and committed pipeline of 150,649 seats (over 110,000 operational) as of Sep'24, ICICI Securities expects continued growth ahead. We estimate CAGR of 35% in seat addition, 31% in revenue and 53% in IGAAP EBITDA (EBITDA post lease payments) over FY24?27E. The brokerage retains a BUY with a revised target price of Rs 1,049 (earlier Rs 979), as we roll forward to 25x Mar?27E IGAAP EBITDA (earlier Dec'26E) of Rs 2.8bn and add net cash of Rs 2.4bn. Key risks: Slowdown in office leasing and pricing competition.

Promoter/FII Holdings
Promoters held 28.24 per cent stake in the company as of 30-Sep-2024, while FIIs owned 20.65 per cent, DIIs 11.98 per cent.