Office Leasing Firm Gains 4 per cent After Entering into JV with Pepperfry, Trades Below Industry PE
EFC (I) Ltd. Strengthens Market Position Through Strategic Expansion and Diversification
EFC (I) Ltd.’s stock witnessed a nearly 4 per cent surge in early trading on Wednesday, reaching Rs 230, following the company’s announcement of a new joint venture with Pepperfry Limited. The newly incorporated entity, Forty Two Ventures Limited, marks a strategic expansion into logistics and furniture management, aligning with the company’s long-term growth objectives.
EFC (I) Limited continues to focus on enhancing its market presence through key partnerships. The formation of Forty Two Ventures Limited was disclosed under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015. The joint venture will operate in the logistics and supply chain management sector, specifically developing, managing, and operating furniture studios. With an authorized share capital of Rs 25 lakhs and a paid-up share capital of Rs 10 lakhs, EFC (I) Ltd. has acquired a 50 per cent stake, investing Rs 5 lakhs initially.
This collaboration with Pepperfry is expected to complement EFC (I) Ltd.’s core operations while creating synergies in the managed workspace and furniture ecosystem. Given that the venture requires no regulatory approvals, it is set to function independently, strengthening the company’s diversification efforts.
EFC (I) Ltd. delivered a strong financial performance in Q3 FY25, demonstrating resilience across its verticals. The company reported a revenue of Rs 181.5 crores, marking a 6.1 per cent sequential growth over Q2 FY25. Its EBITDA stood at Rs 96.92 crores, reflecting a 10.3 per cent quarter-on-quarter increase, while Profit After Tax (PAT) climbed 10.7 per cent sequentially to Rs 40.47 crores.
The company’s leasing vertical saw continued demand, with assets under management (AUM) expanding to 2.6 million square feet across 70 sites. The portfolio maintained a strong occupancy rate of 90 per cent, while the average rent per seat exceeded Rs 6,250. Notably, an additional 200,000 square feet were added to AUM in Q3 FY25, increasing the seating capacity by 5,650. Rental revenue grew by 31 per cent year-on-year, with EBIT surging 157 per cent over the previous year.
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The company executed projects spanning over 400,000 square feet in diverse sectors, including real estate, education, IT, and ITES. The segment currently has a total project pipeline of Rs 92 crores, with Rs 32 crores under execution and Rs 60 crores in progress. This segment registered a 51 per cent year-on-year revenue growth, further strengthening EFC (I) Ltd.’s foothold in integrated turnkey solutions.
The company’s furniture division has also grown robustly, with revenue from completed projects reaching Rs 13.33 crores. Ongoing projects worth Rs 2.65 crores are currently under execution, while the firm anticipates completing additional projects valued at Rs 8.57 crores within 30 days and Rs 14.35 crores within the next 60 days.
Established in 1984, EFC (I) Ltd. (formerly Amani Trading and Exports Ltd.) primarily operates in the office leasing business. The company continues expanding its footprint, focusing on managed workspaces and strategic collaborations.
As of 10:35 am on Wednesday, the stock was trading at Rs 223.75, bringing the company’s market capitalization to Rs 2,222 crores. Over the past year, the stock has returned 10.39 per cent, with a 52-week high of Rs 716.95 and a low of Rs 200.05. Despite recent gains, the stock trades at a price-to-earnings (PE) ratio of 20x, significantly below the industry average of 27.9x.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.