The target implies an upside of around 31% from the stock’s closing price of ₹152.45 on Wednesday.
Nomura sees Wakefit as a leading player in India’s large home furnishings market, with the company leveraging its leadership in mattresses to expand its presence across furniture and other home furnishing categories.
The brokerage expects Wakefit to deliver a 19% revenue compound annual growth rate (CAGR) and a 31% pre-Ind AS EBITDA CAGR over FY26-29F. It expects the company’s pre-Ind AS EBITDA margin to expand from 7.4% in FY26 to 10.3% by FY29F.
According to Nomura, Wakefit’s full-stack operating model should support further cost efficiencies as the company expands its direct-to-consumer (D2C) presence both online and offline.
The brokerage said Wakefit trades at 40 times and 29.5 times FY28F and FY29F price-to-earnings multiples, respectively, which it considers attractive given the company’s growth outlook. Nomura believes the risk-reward on the stock remains favourable.
Founded in 2016, Wakefit has emerged as one of the home-grown brands in India’s organised home and furnishings market. The company crossed ₹1,000 crore in annual income in FY24 and has a product portfolio spanning mattresses, furniture and furnishings, sold through its own website, COCO stores, external marketplaces and multi-brand outlets.
Wakefit operates a vertically integrated business model, with operations spanning product design, engineering, manufacturing, distribution and customer experience. The company has five manufacturing facilities – two in Bengaluru, two in Hosur and one in Sonipat – and uses automated systems, including robotic arms and roller belts, to improve manufacturing efficiency and reduce wastage.
Of the three analysts currently covering Wakefit, two have a ‘Buy’ recommendation, while one has a ‘Sell’ rating on the stock.
Wakefit Innovations shares ended 0.31% lower at ₹152.45 on Wednesday. The stock has declined around 18% so far this year.
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