Eureka Forbes Shares Gain 2%: Know Why

On December 5, Eureka Forbes’ shares marked a 2% ascent, reaching Rs 535 per share, spurred by brokerage firm Nomura initiating ‘neutral’ coverage. Nomura has set a target price of Rs 568 per share, signaling a 6% potential increase from the current levels.

In the last month, Eureka Forbes’ stock witnessed a notable surge of over 7%, outpacing the 7% rise in the benchmark Sensex. Renowned as a leading provider of health and hygiene products in India, Eureka Forbes offers a diverse range of products, from water purifiers to vacuum cleaners.

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Analysts at Nomura elucidated their ‘neutral’ rating, citing structural drivers such as increased electricity availability, growing access to piped water (now at approximately 69% of rural households as of September 2023, up from 19% in August 2019), and elevated levels of total dissolved solids (TDS) in water in many states, necessitating water purifiers. The analysts also emphasized that the current low penetration levels (around 8% of households) imply long-term growth visibility.

As of 12:52 pm, the shares were trading at ₹522.00.