I have been struggling with 3 points. Please do help…
1. Low capex per seat: As Neeraj Marathe mentions from his experience of co-running a similar business wherein he talks if a co-working business operates at <Rs 6k sq ft, then it’s not viable.
If my math is correct, how is EFC working at Rs 1250 psft (Rs 50k capex per seat with avg of 40 sq ft per seat)? Is this since >75% of their clients are in “managed offices” not co-working (flex) which requires lesser capex than usual?
2. Why REIT right now? What’s the potential upside of venturing into the REIT space - I am specifically trying to work out the math from the EPS accretion point of view. any thoughts…
3. Distraction or Synergy from being full-stack - Getting into interior design + furniture mfg/trading (bringing it around 36% of FY24, while it seems to be revenue accretive (and maybe margin as well for now), can this be a distraction for the overall business which has and will become more cut-throat over time due to lower entry barriers?
Disclosure: no holding (here’s my latest portfolio). closely tracking to see if the evidence so far merits an action.