Ashish Kacholia’s portfolio stock AWFIS is a good buy for 33% upside potential says Nuvama

AWFIS is one of the high conviction stock picks in the portfolio of Ashish Kacholia. According to a research report, Nuvama is bullish on AWFIS’ long-term growth prospects given the: i) favourable demand-supply gap, ii) strong inventory additions, iii) improving occupancy, iv) capital-light growth, and v) robust Balance Sheet. We are confident in the management’s ability to deliver profitable growth. At the CMP, the stock trades at a FY27E P/E of 17.6x. Maintain ‘BUY’.

Awfis Space Solutions (AWFIS) reported a strong 40% YoY revenue growth to INR292cr led by a 42%/36% growth in rental/design and build (D&B) segments. Growth in the rental segment was driven by: i) a 48% YoY growth in operational inventory, and ii) a 200bp rise in occupancy. Average monthly realisation per seat fell 4% YoY. EBITDA (excluding Ind AS 116) grew 163% YoY to INR42cr, with margin expanding by 664bp to 14.4% on strong occupancy, operating leverage benefits, and greater revenue share from long tenure clients. Reported EBITDA grew 67% YoY to INR100cr. RPAT (excluding exceptional items) scaled up to INR15cr as against a net loss of INR4cr in Q2FY24. Sequentially, revenue grew 13% on a 10% growth in seat inventory, a 200bp rise in occupancy, and 7% higher realisation.