Nuvama has initiated coverage on Eureka Forbes with a buy rating and a target price of ₹700 per share, implying an upside of about 20 percent from the current market price of ₹580.90.
The brokerage highlighted that Eureka Forbes is India’s largest electric water purifier company, commanding a 40–45 percent share of the ₹49 billion organised market. As the only large full-stack player in a still underpenetrated market with just 6 percent penetration, the company is fortifying its position through innovative SKUs, revitalised advertising and promotion, an omni-channel reach strategy, and a revamped after-sales service business that contributes 33 percent of revenue.
Nuvama expects the company to deliver a 14 percent revenue CAGR, alongside stronger EBITDA and PAT growth of 24 percent and 31 percent respectively over FY25–28. The brokerage said a 300 basis point operating leverage is likely to materialise over this period, aided by cost optimisation, following a 530 bps improvement achieved between FY23–25.
Disclaimer: The views and recommendations expressed in this article are those of Nuvama. This publication does not provide investment advice. Readers are advised to consult certified financial advisers before making any investment decisions.
