Buy EFC (I) Ltd for 75% upside potential: Choice Broking

EFC (I) Ltd: Buy at ₹488 | Target Price: ₹855 | Upside Potential: 75%

EFC’s plan to scale up all 3 business verticals – Managed office space, Design and Build and Furniture manufacturing will establish itself as an integrated player with diverse revenue streams and also able to capitalize on the cross synergies from these 3 verticals. The furniture manufacturing division starts contributing meaningfully from Q2FY25 as the large capacities go live and will be scaled up in FY26. With the market already for EFC as 60-70% capacity utilization will be met from internal furniture requirement only and then will start pursuing the B2B model. We assign a multiple of 20x on FY26E EPS, and arrive at the TP of INR 855 with an OUTPERFORM rating.