Stocks To Buy: Jefferies bets on this underperforming new listing for 29% upside

Shares of WeWork India Management Ltd. will be in focus on Tuesday, November 18, after the Bengaluru-based flexible workspace operator received its first initiation coverage from a brokerage firm.

Jefferies has initiated coverage on WeWork India with a 'Buy' rating and a price target of ₹790, implying a 29% upside from the stock's last closing price.

The brokerage said that WeWork India is the largest flexible workspace operator in India by revenue. With flexible workspace stock growing at a 17% CAGR, nearly twice the pace of traditional office stock, Jefferies believes there is ample room for further penetration.

WeWork India's premium positioning also enables it to command higher average revenue per member (ARPM) and superior margins than peers.

Jefferies expects WeWork India's revenue to grow at a 22% compound annual growth rate (CAGR) between FY25 and FY28, while EBITDA is estimated to grow even faster at 28% annually over the same period.

WeWork India was listed on the NSE and BSE on October 10. The IPO was a pure offer for sale (OFS), meaning the company did not receive any proceeds from the listing.

Promoter Embassy Buildcon LLP sold shares in the IPO, along with existing investor Ariel Way Tenant Ltd., a unit of WeWork International.

Launched in 2017, WeWork India now operates 68 centres across eight cities, offering 1.14 lakh desks. Bengaluru (46.1%) and Mumbai (23.93%) together account for nearly 70% of total capacity.

In an interview with CNBC-TV18 last week, Karan Virwani, Managing Director and CEO of WeWork India, said the company's revenue base is "30-40% higher than anyone else in the industry," driven by scale and strong demand.

He added that growth momentum remains robust.
"We believe that the business at scale continues to grow and will grow above 20%, and you will see that ramp up over the course of the year."

The company reported its first true operating profit in the July-September 2025 quarter, posting a PAT of ₹6.4 crore (excluding last year's tax credit). Revenue rose 17% year-on-year to ₹585 crore, marking its highest-ever quarterly revenue.

Virwani said the company has grown over 21% YoY in capacity, with occupancy improving by nearly five percentage points to 80-81%. "Revenue has gone up to ₹585 crore… EBITDA has grown almost 45% quarter-on-quarter to about a 20% margin," he said.

WeWork India also swung to positive operating cash flow, generating ₹6.4 crore, compared to ₹34 crore a year earlier.

On margins, Virwani said EBITDA improved to 20%, up from 15% in the previous quarter, driven by rising occupancy and operating leverage.

Shares of WeWork India Management Ltd. closed 1.24% lower at ₹614 on Monday. The stock is currently 5% below its IPO price of ₹648.