Awfis Space Solutions Share Price Today: Opens Below Market Expectations, Should You Buy or Sell?

Despite high market expectations of a 30% premium over the upper price band of ₹383, Awfis Space Solutions shares opened at ₹432.25 on the BSE and ₹435 on the NSE, delivering a modest 13% gain to initial investors. Following the positive listing, the share price saw fresh buying interest, helping it stay above the listing price.

Expert Opinions

Stock market experts say Awfis Space Solutions is the leading company among the top five in India’s flexible workspace segment. They believe the company could become net cash positive by the next fiscal year. Experts advise initial investors to hold their shares with a trailing stop loss at ₹400, expecting more upside.

Prashanth Tapse, Senior VP at Mehta Equities, says the positive debut reflects the company’s success. He highlights that despite challenges, the management’s confidence in turning net cash positive is reassuring, driven by the strong demand in the flexible workspace market.

Future Outlook

VLA Ambala, Co-founder of Stock Market Today, recommends long-term investors hold their shares. Despite the company’s negative net profit and increased borrowing between 2021 and 2023, its revenue grew by 103% and PAT increased by 18.4% between FY2022-23. The company aims to meet diverse client needs with solutions like Awfis Transform and Awfis Care. With a lower capital expenditure per seat compared to top operators, the company shows promise.

Shreyansh V Shah, Research Analyst at StoxBox, points out Awfis Space Solutions’ strong Return on Capital Employed (ROCE) of 25.3% in FY23. Despite ongoing losses, the company has shown steady growth, indicating future profitability. He recommends long-term holding of shares.

Prashanth Tapse advises investors to book 50% profits now and hold the rest for the short term, with a target of ₹470 to ₹500 and a stop loss below ₹412.

VLA Ambala suggests holding the shares for a target of ₹520, with a stop loss at ₹400 per share.