Shares of WeWork India Management Ltd rose 4.46% to Rs 642.25 on Tuesday, November 18, after Jefferies initiated coverage on the Bengaluru-based flexible workspace operator with a ‘Buy’ rating and a target price of Rs 790. The upside target implies a 29% gain from the previous close of Rs 614.80.
Jefferies noted that WeWork India is the country’s largest flexible workspace operator by revenue and said the segment continues to expand rapidly. With flexible workspace stock growing at a 17% CAGR — nearly double the pace of traditional office supply — the brokerage believes the company is well-positioned to gain further market share.
WeWork India’s premium positioning enables it to command higher average revenue per member (ARPM) and stronger margins than peers. Jefferies expects revenue to grow at a 22% CAGR between FY25 and FY28, while EBITDA is projected to expand at an even faster 28% CAGR over the same period.
The stock has remained in focus since the company’s listing on the NSE and BSE on October 10 through a pure offer for sale. Promoter Embassy Buildcon LLP and investor Ariel Way Tenant Ltd., a unit of WeWork International, offloaded shares in the IPO.
Founded in 2017, WeWork India operates 68 centres across eight major cities, offering 1.14 lakh desks. Bengaluru accounts for 46.1% of total capacity, followed by Mumbai at 23.93%.
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