Awfis Space Solutions Limited (NSE:AWFIS) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Last week, you might have seen that Awfis Space Solutions Limited (NSE:AWFIS) released its quarterly result to the market. The early response was not positive, with shares down 4.2% to ₹571 in the past week. It was a credible result overall, with revenues of ₹3.7b and statutory earnings per share of ₹9.67 both in line with analyst estimates, showing that Awfis Space Solutions is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Awfis Space Solutions' five analysts is for revenues of ₹15.4b in 2026. This reflects a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 73% to ₹12.70. In the lead-up to this report, the analysts had been modelling revenues of ₹15.6b and earnings per share (EPS) of ₹15.38 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

View our latest analysis for Awfis Space Solutions

The consensus price target held steady at ₹843, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Awfis Space Solutions at ₹925 per share, while the most bearish prices it at ₹750. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Awfis Space Solutions' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 24% growth on an annualised basis. This is compared to a historical growth rate of 38% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 23% annually. Factoring in the forecast slowdown in growth, it looks like Awfis Space Solutions is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Awfis Space Solutions. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Awfis Space Solutions. Long-term earnings power is much more important than next year's profits. We have forecasts for Awfis Space Solutions going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.