Wakefit shares jump over 4% as Nomura initiates coverage. Check target price

Wakefit Innovations shares jumped more than 4% in early trade on Thursday after Nomura initiated coverage with a Buy rating and a target price of Rs 200, citing the company’s online mattress leadership, furniture expansion and vertically integrated operating model.

The stock rose 4.15% to Rs 158.80 on the NSE, from its previous close of Rs 152.47. It later touched an intraday high of Rs 159.95 before paring gains.

Nomura’s target implies a potential upside of 31% from its reference price of Rs 153. The brokerage valued Wakefit at 25 times its average estimated pre-Ind AS EBITDA for FY28 and FY29.


Wakefit shares rallied 19.24% over the past month on NSE, outperforming the benchmark index, which declined 1.87%. The counter recorded a turnover of Rs 47.68 crore, with deliverable shares accounting for 35.51% of traded volume.

Online mattress leadership anchors growth

Wakefit holds an estimated 30-35% share of India’s online mattress market and ranks among the top three companies in the organised segment. Mattresses contributed about 61% of its FY26 revenue, while furniture accounted for 29%.

Nomura said Wakefit’s vertically integrated model, spanning product development, manufacturing, logistics and distribution, supports cost efficiency and pricing power. Around 72% of sales in the June quarter came through its website and company-owned stores, giving it greater control over margins and customer experience.

The company operated 165 stores at the end of the June quarter and plans to add about 80-90 smaller outlets annually. It also intends to open larger Jumbo stores from the second quarter of FY28 to accelerate furniture sales.

Revenue, margins set to expand

Nomura expects Wakefit’s revenue to grow at a compound annual rate of 19%, from Rs 1,489 crore in FY26 to Rs 2,499 crore in FY29. Mattress and furniture revenue are projected to grow at CAGRs of around 19% and 23%, respectively.

Pre-Ind AS EBITDA is forecast to increase from Rs 110 crore in FY26 to Rs 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, a better product mix and supply-chain efficiencies.

The brokerage expects Wakefit to remain cash-flow positive despite higher spending on Jumbo stores. It also forecasts return on invested capital of 38% in FY28 and 49% in FY29.

Key watchpoints

Nomura identified the timely rollout and consumer acceptance of Jumbo stores as key monitorables because its furniture growth forecasts depend partly on their success. A slower shift towards branded mattresses, rising competition and limited success in cross-selling furniture and furnishings could also affect growth.

Raw-material volatility presents another risk, as crude-oil derivatives account for about 80% of mattress input costs. Currency depreciation could add further pressure because foreign-currency expenditure on imports was equivalent to around 17% of FY26 sales.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)