Awfis Space Solutions Limited

Industrials — Rental & Leasing Services · NSE

₹244.00+₹2.37 (+0.98%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Awfis Space Solutions Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Awfis Space Solutions Limited provides flexible workspace solutions in India. The company operates through the Co-Working Space on Rent and Allied Services, Construction and Fit-Out Projects, and Other Services segments.

IndustryRental & Leasing Services

SectorIndustrials

Employees731

Annual revenue₹1,493 Cr

How does it make money?

Turns over ₹1,493 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹42 left at the operating level before interest, tax and depreciation. Each of its 731 employees supports ₹2.04 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.04 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 19.4% and earnings to grow about 28.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+19.4%

Est. earnings growth+28.8%

Analysts7

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +174% while net margin moved -155% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+174%

Margin effect-155%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Beta of 1.06 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

20.7x

1.3Y Median

33.9x

16 monthly readings · mean 38.2x · range 23.9x–62.1x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 39% below its 1.3y median of 33.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 77% below the peer median of 88.8x.

vs. its own history

Cheap

33.9x median over 16 months · -39%

vs. sector peers

Cheap

88.8x median of 3 peers · -77%

vs. generic bands

Fair

15x–35x

EV/EBITDA

5.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 31.6% to 42.5% over 3 years.
Cash generation is improving
Free cash flow is up 1039% over 3 years.
Return on equity is rising
ROE has improved from -27.5% to 12.8%.
Return on capital is rising
ROCE has improved from 3.9% to 13.4%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 200% over 3 years, from ₹500 Cr to ₹1,501 Cr.
🔴High leverageFinancial
Debt/Equity of 2.72x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.68 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 31.6% to 42.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 39% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 77% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.72x. Interest is payable whether or not the business has a good year.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 30% a year✓ 39.9% CAGR
Latest reported year was 27.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 40%✓ 42.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹406 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹1,746 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.7x

Fair

Fairly valued against the generic band

P/B Ratio

3.16x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.78

Profitable

Profitable on a per-share basis

ROE

12.8%

Moderate

Moderate capital efficiency

ROCE

13.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.72x

High

High leverage

Revenue Growth (YoY)

27.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

138.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹406 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

11.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

11.6%

Average

Average margins

Net Margin

5.4%

Average

Average bottom-line conversion

Current Ratio

0.68

Tight

Tight short-term liquidity

Beta (vs Nifty)

1.06

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

251.4 / 259.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹545 Cr	₹849 Cr	₹1,208 Cr	₹1,493 Cr	+39.9%
EBITDA	₹172 Cr	₹269 Cr	₹456 Cr	₹635 Cr	+54.4%
EBITDA Margin	31.6%	31.7%	37.7%	42.5%	—
PAT (Net Profit)	-₹47 Cr	-₹18 Cr	₹68 Cr	₹71 Cr	—
EPS	₹-6.72	₹-2.53	₹9.67	₹9.92	—
ROE	-27.5%	-7.0%	14.8%	12.8%	—
ROCE	3.9%	7.9%	11.5%	13.4%	—
Total Debt	₹500 Cr	₹734 Cr	₹1,413 Cr	₹1,501 Cr	+44.3%
Free Cash Flow	₹36 Cr	₹85 Cr	₹163 Cr	₹406 Cr	+125.0%

🟢 Revenue has grown at 39.9% a year over 3 years.

🟢 EBITDA has grown at 54.4% a year over 3 years.

🟢 EBITDA Margin has risen from 31.6% to 42.5% over 3 years (+10.9 pts).

🟢 PAT (Net Profit) has turned positive, from -₹47 Cr to ₹71 Cr.

🟢 EPS has turned positive, from ₹-6.72 to ₹9.92.

🟢 ROE has risen from -27.5% to 12.8% over 3 years (+40.4 pts).

🟢 ROCE has risen from 3.9% to 13.4% over 3 years (+9.5 pts).

🔴 Total Debt has grown at 44.3% a year over 3 years.

🟢 Free Cash Flow has grown at 125.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,910 Cr

Total Liabilities

₹2,358 Cr

Cash & Equivalents

₹50 Cr

Operating Cash Flow

₹616 Cr

Capex

-₹210 Cr

Shareholding (proxy)

Institutional Holding

49.4%

Insider Holding

26.7%

Analyst Consensus

Recommendations

7 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹458.86

+88.1% vs CMP

Target Range

₹286 – ₹744

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

3 mixed3 general

Awfis Space Solutions (NSEI:AWFIS) Stock Forecast & Analyst Predictions

Simply Wall Street, 11 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Awfis Space Solutions Share Price: Buy or Sell

Univest, 08 Sept

Awfis Space Solutions share price jumps nearly 20% despite weak Sensex, Nifty 50; what should investors do now?

Livemint, 11 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Awfis Space Solutions Ltd Share Price Live Today

CNBC TV18, 09 Oct

Awfis Space Solutions to hold 12th AGM on September 21, 2026

scanx.trade, 21 Sept

₹524: That's What Analysts Think Awfis Space Solutions Limited (NSE:AWFIS) Is Worth After Its Latest Results

Simply Wall Street, 16 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Valuation

MiddlingProfitability

WeakFinancial Health · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑