Freelancers and startups are always concerned about the expenses related to office spaces. They generally are not able to afford setting up offices with high amenities such as high-speed internet, meeting rooms, etc. Then, various companies found it as an opportunity and started renting shared Coworking Spaces with all modern facilities.
In today’s blog post, we will give you an overview of the top Coworking Space Stocks, along with the benefits of investing in them.
What is Coworking Space?
A Coworking Space is a common or shared office space where individuals from different companies work in a common workspace. They use the office premises based on a monthly or yearly subscription. Coworking Spaces are equipped with all modern facilities such as high-speed internet, cafeteria, conference room, etc. They are generally used by freelancers, startups, etc.
Top Coworking Space Stocks
- AWFIS Space Solutions Limited
- DEV Accelerators Limited
- EFC Limited
- Indiqube Spaces Limited
- Kontor Space Limited
- Smart Coworking Spaces Limited
- WeWork India Management Limited
| Company | Current Market Price (INR) | Market Capitalisation (in INR crore) | 52-Week High | 52-Week Low |
|---|---|---|---|---|
| AWFIS Space Solutions Limited | 609.5 | 4,358 | 614.50 | 602.10 |
| DEV Accelerators Limited | 44.60 | 402 | 46.14 | 43.5 |
| EFC Limited | 296.8 | 2,954 | 305.9 | 296 |
| Indiqube Spaces Limited | 223.6 | 4,696 | 227.2 | 223 |
| Kontor Space Limited | 77 | 47 | 77 | 74.65 |
| Smart Coworking Spaces Limited | 558 | 6,375 | 570.05 | 555.90 |
| WeWork India Management Limited | 647 | 8,676 | 655 | 544 |
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Overview of Top Coworking Space Stocks in India
1. AWFIS Space Solutions Limited
AWFIS Space Solutions Limited company was founded in 2015 by Amit Ramani. The company has changed the concept of sharing workspace by offering affordability with convenience. The company offers spaces across various cities of India, including Delhi, Pune, Hyderabad, Mumbai and Bengaluru. The company has its headquarters in Delhi.
2. DEV Accelerators Limited
Dev Accelerators Limited was established in the year 2017, and initially it was established as a Limited Liability Partnership. Later in 2020, it converted into a private limited company and in 2024, it finally converted into a public limited company. The company aims to fill the gap between entrepreneurs and investors. Its headquarters are situated in Ahmedabad, Gujarat.
3. EFC Limited
The company was initially incorporated in 1984 and was known as Amani Trading and Exports Limited. Later, the promoters of the company changed and renamed the company as EFC Limited in 2022. It provides managed office space and offers property management. The company’s headquarters is situated in Pune, Maharashtra.
4. Indiqube Spaces Limited
Indiqube Spaces Limited company was founded by Meghna Agarwal and Rishi Das in 2015. It was a startup to provide office space to cater for the needs of startups’ office space requirements. It allows companies to focus on their businesses instead of worrying about the real estate or office spaces. The company’s headquarters is situated in Bengaluru.
5. Kontor Space Limited
Kontor Space Limited company was established in 2018 and offers tech-enabled office spaces. Their offerings include various workspaces, including private offices, meeting rooms, etc. The company primarily offers workspaces in Mumbai. Also, its headquarters are situated in Maharashtra. Their office spaces are very affordable and are preferred by startups.
6. Smart Coworking Spaces Limited
The company started its journey in 2015 and was initially known as Smart Work Business Centre Private Limited. In 2018, it changed its name to Smartworks Coworking Spaces Private Limited. The company converted into a publicly listed company through its IPO in 2024. The company is primarily focusing on leasing entire properties into a tech-enabled campus equipped with modern facilities such as a cafeteria, gyms, etc. The company’s headquarters is situated in New Delhi.
7. WeWork India Management Limited
The company was established in 2016 and began its operation in 2017. The entity is backed by Embassy Group and holds a 72% stake in it. The company has expanded its business rapidly and provides modern tech-enabled Grade-A managed office spaces. The company’s headquarters is situated in Bengaluru.
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Key Performance Indicators (KPIs)
| Company | Debt to Equity | ROE (%) | ROCE (%) | Operating Profit Margin (%) | Net Profit Margin (%) |
|---|---|---|---|---|---|
| AWFIS Space Solutions Limited | 0.05 | 14.77 | 10.09 | 14.88 | 5.62 |
| DEV Accelerators Limited | 2.50 | 2.92 | 11.74 | 35.71 | 1.16 |
| EFC Limited | 0.43 | 20.77 | 17.88 | 37.38 | 21.43 |
| Indiqube Spaces Limited | (33.46) | 0 | 4.46 | 16.33 | (13.18) |
| Kontor Space Limited | 0.16 | 15.76 | 15.28 | 23.53 | 20.88 |
| Smart Coworking Spaces Limited | 3.51 | (54.46) | 7.46 | 19.13 | (4.60) |
| WeWork India Management Limited | 1.55 | 63.79 | 12.22 | 25.08 | 6.67 |
Benefits of Investing in Coworking Space Stocks
The key benefits of investing in Coworking Space Stocks are as follows:
- Increasing Demand: With the increase in startups, the demand for affordable coworking spaces has increased over time, and if the trend continues in the future, the coworking companies will benefit from it.
- High Rental Yields: The coworking spaces utilise the underutilised real estate properties. This provides them with high rental yields.
- Limited Competitions: There are very few players in this sector, which provides an early investment opportunity for long-term growth.
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Factors to Consider Before Investing in Coworking Space Stocks
There are various factors which one should consider before investing in Coworking Space Stocks, a few of which are as follows:
- Companies’ Financials: Before investing in Coworking Space Stocks, one should analyse the companies fundamentally and check their financial performance.
- Operational Efficiency: The company’s efficiency in utilising the workspace and managing is the key factor which one should consider before investing in any Coworking Space Stocks.
- Lease Agreement: Before investing in Coworking Space Stocks, one must check the company’s long-term lease agreement, along with the other terms and conditions.
Future of Coworking Space Stocks
The Coworking Space in India is growing at an annualised rate of 15% to 20%. The expansion will take this industry to reach 40 billion dollars by 2030. The companies engaged in this sector have high profit margins, but are capital-intensive in nature. The rising cost of real estate in India will support them in increasing their profits, as start-ups prefer to use Coworking spaces for their work.
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Conclusion
On a concluding note, the Coworking Space is one of the emerging sectors in India. With the rise of flexible working and cost-efficient space solutions, this sector is expected to grow at an exponential rate. It offers smart office solutions at an affordable price. However, there are certain risks involved while investing in these stocks, such as operational efficiency, occupancy rate, etc. Therefore, it is advisable to consult your investment advisor before investing in Coworking Space Stocks.
Frequently Asked Questions (FAQs)
What is a Coworking Space?
A Coworking Space is an office environment which is shared by different individuals or companies based on a monthly or yearly subscription. Such offices are equipped with modern facilities such as internet, coffee and meeting areas, etc.
Name some Coworking Space Stocks?
The popular coworking space stocks include AWFIS Space Solutions Limited, DEV Accelerators Limited, and Smart Coworking Spaces Limited, among others.
What are the risks involved while investing in Coworking Space Stocks?
There are various risks that one should consider before investing in Coworking Space Stocks, such as changes in real estate rates, dependency on occupancy, competition, and the location of the property, among others.
What makes shared office space different from traditional offices?
Unlike traditional offices, which require long-term leases and setup costs, shared office spaces come with all amenities and are available for a flexible rent with zero setup costs.
Are Coworking Spaces only used by startups and freelancers?
No, with the popularity of coworking spaces, various companies are using it to expand their geographical area, setting up a hybrid team across many cities.
