Tale of the Tape 

Hi ya’ll. Happy Friday!

Markets traded range-bound for most of the day before a last-hour trading bump saw the Nifty (+0.2%) and Sensex (+0.3%) end with minor gains. We still ended the week in the green so that’s good news. Broader markets saw strong buying, with Midcaps (+0.8%) and Smallcaps (+0.7%) having a better day. The advance-decline ratio was in favour of the bulls (3:2).

Except for Real Estate (-0.1%), all other sectors ended in the green or were flat. Metals (+1.8%) were the star of the show, followed by PSU Banks (+1.1%) and Oil & Gas (+0.6%).

In today’s issue of the Daily Rip we dive into the WeWork India IPO, break down why V-Mart and PC Jeweller had a great trading session, look at the week’s top stocks and more.

Honourable Mentions:

Defence stocks were on a roll after Goldman Sachs initiated coverage on a bunch of them. PTC Industries, Data Patterns and Astra Microwave rallied between +6% and +11%.

Check out the NSE 500 heatmap:

IPO
Shared Spaces, Shared Stakes

WeWork India’s IPO is open for subscription! The price band is fixed at Rs 615-648 p/s. The company aims to raise Rs 3,000-cr from the IPO.

For the unaware, the company is India’s largest premium flexible workspace provider with 68 centres across 8 cities. It’s actually promoted by the Embassy Group, which licenses the brand from WeWork. But the strength of the brand has allowed Embassy to nab top clients like Amazon, JP Morgan, and Deutsche Telekom for their India offices. Growth has been solid with its topline rising at a CAGR of 21.7% over FY23-FY25. And like many companies, it also conveniently became profitable in FY25, just before its IPO!

FYI - the IPO is 100% an ‘Offer for Sale’. This means the listing is just a way for existing promoters to reduce their stake, which is a negative!

FY25 Snapshot:

• Revenue: Rs 1,949 cr; +17% YoY

• EBITDA: Rs 1,236 cr; +18% YoY

• EBITDA Margin: 63.41% vs 62.68%

• PAT: Rs 128 cr vs Rs 136 cr loss last year

Big Picture: The office solutions space has become pretty crowded over the last year. Luckily, WeWork has managed to carve a niche in the premium segment. Roughly 94% of its portfolio is in what the industry calls ‘Grade A’ office spaces; aka the best of the best. That, and its reputation, means that international clients account for 66% of its enterprise members which gives it an edge over competitors. There’s also INSANE growth potential with Trump’s H1B visa move set to drive further growth of GCCs (aka high-end tech back offices) in India.

That said, the IPO pricing is on the slightly expensive side. Which is partly why grey market data suggests it may basically list flat (+2% premium).

Specials
Rally In VodaIdea Share!

VodaIdea has rallied ~30% in the last month. Is it a sign of changing fortunes or just wild speculation? We break down all the latest news, industry developments and brokerage ratings in our latest video. Miss it at your own expense!