As of Thursday's early trade, Wakefit Innovations Ltd shares gained 4.15% to ₹158.80 on the NSE, up from the previous close of ₹152.47. The stock later touched an intraday high of ₹159.95 before paring gains. The stock has shown strong momentum with a 19.24% rally over the past month, significantly outperforming the benchmark index which declined 1.87% during the same period. The company's market capitalization stands at ₹5,056.60 crore with PE and PB ratios of 26.28 and 34.13 respectively.
Brokerage firm Nomura has initiated coverage on Wakefit Innovations Ltd. with a 'Buy' recommendation and a price target of ₹200 per share, according to The Economic Times. The target implies an upside of around 31% from the stock's current trading price of ₹158.80. Nomura valued Wakefit at 25 times its average estimated pre-Ind AS EBITDA for FY28 and FY29, citing the company's online mattress leadership, furniture expansion and vertically integrated operating model. The brokerage expects Wakefit to remain cash-flow positive despite higher spending on Jumbo stores and forecasts return on invested capital of 38% in FY28 and 49% in FY29.
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, as reported by The Economic Times. Pre-Ind AS EBITDA is forecast to increase from ₹110 crore in FY26 to ₹257 crore in FY29, representing a CAGR of 31%. The corresponding margin is expected to expand from 7.4% to 10.3%, supported by operating leverage, better product mix and supply-chain efficiencies. The company's pre-Ind AS EBITDA margin is projected to expand from 7.4% in FY26 to 10.3% by FY29F.
The company operated 165 stores at the end of the June quarter and plans to add about 80-90 smaller outlets annually, as reported by The Economic Times. Wakefit also intends to open larger Jumbo stores from the second quarter of FY28 to accelerate furniture sales. Founded in 2016, 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. The company was one of the first organised players in India to introduce roll-packing technology for mattresses and has expanded its retail presence by adding 42 COCO stores in FY 2026, taking the total count to 139 stores.
The stock recorded a turnover of ₹47.68 crore with deliverable shares accounting for 35.51% of traded volume, according to The Economic Times. Of the three analysts currently covering Wakefit, two have a 'Buy' recommendation, while one has a 'Sell' rating on the stock. However, Nomura flagged key risks including raw-material volatility, as crude-oil derivatives account for about 80% of mattress input costs, and currency depreciation which could add pressure because foreign-currency expenditure on imports was equivalent to around 17% of FY26 sales. The stock has shown recent volatility with the current trading price reflecting market dynamics in the home furnishings sector.
