Wework India (WEWORK)

FairStock Score: 55/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Revenue growth of 28.95% with latest quarter sales of ₹632 Cr shows strong business momentum.
• Profit growth of 151.30% and positive net profit of ₹15 Cr indicate improving operating leverage.
• Piotroski F-Score of 7/9 points to solid financial health across profitability, leverage, and efficiency.
• ROCE of 137.07% suggests highly efficient use of capital, though aided by a thin equity base.
• Promoter holding of 49.80% aligns management's interests with minority shareholders.

Concerns

• P/E of 28.49 and P/B of 36.00 leave little margin of safety; book value is just ₹14.99 against a price of ₹539.60.
• Debt-to-equity of 23.79 signals heavy leverage and significant balance-sheet risk.
• Net margin is thin: ₹15 Cr profit on ₹632 Cr revenue is roughly 2.4%.
• Zero dividend yield means returns depend entirely on future capital appreciation.

AI Analysis

At ₹539.60, WeWork India is asking me to pay 28.49 times earnings and 36 times book value. That is not the kind of price Benjamin Graham taught me to pay for a business. The growth is real: annual sales increased 28.95%, profit grew 151.30%, and the latest quarter delivered ₹632 Cr in revenue with ₹15 Cr net profit. The PEG ratio of 0.32 looks tempting, but only if you believe this growth can continue with the same velocity. I do not build my analysis on hope. The balance sheet keeps me cautious. Book value is just ₹14.99 per share, while debt-to-equity is 23.79. That is a highly leveraged structure, and in a flexible-office business, a slowdown can turn operating leverage into a painful reverse gear. ROCE of 137.07% sounds superb, but when equity is that thin, a high return on capital employed can be more mathematical illusion than durable competitive advantage. The Piotroski F-Score of 7/9 is a good sign, and promoter holding of 49.80% means management has skin in the game. Still, the dividend yield is zero, so investor returns depend entirely on growth and market sentiment. At 28.49 times earnings, the price already includes a lot of optimism. The 52-week range of ₹420 to ₹794.20 shows how volatile Mr. Market has been. FairStock Score of 55/100 calls it steady, not exceptional. I would classify this as a fast grower, but a fast grower at a price that leaves little margin of safety. If growth slows, or debt costs rise, the multiple can compress sharply. Value investors should wait for a better entry price or a clearer moat.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer