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Kolkata: US-based major brokerage house Jefferies has assigned a 'Buy' rating on WeWork India, which was listed last month on BSE and NSE. It has also assigned a target price of Rs 790. The price at which WeWork India Management shares were trading after 3 pm on Nov 19 was Rs 632.35, down Rs 3.75 or 0.59%. It is the first coverage by a brokerage firm after listing. The issue price of a share of WeWork India was Rs 648. It declined 0.12% on Nov 19 and settled at Rs 635.
Predictably, Jefferies highlighted a few strengths of the company in its report. It said WeWork India is the biggest flexible workspace operator in the country in terms of revenue. The company also has bright expansion possibilities, pointed out the brokerage firm. Its logic: the flexible workspace stock is growing at a CAGR of 17% CAGR, which is about 100% more compared too the growth rate of traditional office stock. Jefferies also mentioned the premium positioning of the company in this sector which will allow it to generate more average revenue per member, which will directly result in higher earnings.
WeWork India came up with its first operating profit in Q2FY26 period.I had a net profit of Rs 6.4 crore (excluding tax credit of last year), while total revenue jumped 17% (YoY) to touch Rs 585 crore. In a recent TV interview the MD & CEO of WeWork India, Karan Virwani, said that their business is expected to expand at 20%. He revealed that the company has record growth of more than 21% YoY in capacity and occupancy has also climbed beyond 80%.
WeWork India also moved to a position to record positive operating cash flow, he said. The WeWork India boss also said that operating profits (EBITDA) rose to 20% compared to 15%in Q1FY26 period.
WeWork India IPO was solely an Offer for Sale with promoter company Embassy Buildcon LLP and existing investor Ariel Way Tenant selling shares in the public issue. Te company has already set up a big presence in the country which boasts of 68 centres across eight cities which cumulatively offer 1.14 lakh desks. However, most of the capacity are accounted for by the high-volume markets of Bengaluru (46.1%) and Mumbai (23.93%).
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