2 hrs ago
Nirmal Bang Sees 47% Upside in WeWork India Stock
WeWork India runs workspaces for businesses.
Its shares have climbed strongly over the past six months.
Nirmal Bang believes the shares could rise further to ₹983.
The brokerage says the company plans to add many more desks and office space each year.
It also expects existing contracts to help increase revenue.
The company has been operationally profitable every month since October 2021.
Its gross debt has fallen from ₹900 crore before COVID-19 to zero net debt.
Nirmal Bang believes the company can fund growth using money generated from its own operations.
WeWork India Management shares have risen 42% over six months, compared with a 1% gain in the Sensex.
Nirmal Bang Institutional Equities maintained a “buy” rating and a ₹983 target price, implying 47% potential upside.
The company plans annual capacity additions of 15–20%, or about 20,000–25,000 desks and 1.7 million square feet.
Nirmal Bang expects capacity growth and contractual escalations to support 20–25% revenue CAGR and 25–30% PAT CAGR.
The brokerage said WeWork India has been operationally profitable monthly since October 2021 and has reduced gross debt to zero.
- Who
- WeWork India Management and Nirmal Bang Institutional Equities.
- What
- Nirmal Bang maintained a “buy” recommendation on WeWork India, with a ₹983 target price implying 47% upside.
- Where
- The report concerns WeWork India’s operations and stock market listing in India.
- When
- The assessment followed a management interaction reported on Wednesday; the share-price comparison covers the last six months.
- Why
- Nirmal Bang cited planned capacity growth, contractual revenue escalations, operating leverage, profitability, zero gross debt and growth funding through internal cash generation.
Key facts
- Brokerage view
- Nirmal Bang maintained a “buy” recommendation.
- Target price
- ₹983
- Implied upside
- 47%
- Six-month share performance
- Up 42%, versus a 1% rise in the Sensex.
- Planned annual capacity growth
- 15–20%, equivalent to about 20,000–25,000 desks or nearly 1.7 million square feet.
- Profitability
- Operationally profitable every month since October 2021.
- Debt position
- Gross debt has fallen from ₹900 crore before COVID-19 to zero net debt.
- Committed revenue coverage
- ₹3,300 crore of committed customer revenue versus ₹1,155 crore in committed landlord liabilities, or nearly three times coverage.
Quotes
Nirmal Bang Institutional Equities
Brokerage firm covering WeWork India’s stock
“Gross debt has reduced from ₹900 crore pre-COVID to zero net debt. Operational break-even occupancy has improved from 73% pre-COVID to nearly 55%. Committed customer revenue of ₹3,300 crore versus ₹1,155 crore in committed landlord liabilities provides nearly 3 times coverage.”
livemint.com
“WeWork India currently trades at 11 times FY28E EV/adjusted EBITDA multiple with adjusted. ROCE of nearly 43% along with its growth visibility makes the current price an attractive entry point ahead of the capacity-led earnings ramp up”
livemint.com
Sources
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