Eureka Forbes
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Eureka Forbes has reported a robust start to FY27, achieving a record revenue growth of 15.3% in Q1, primarily driven by strong demand in its water purifier segment and emerging categories like robotics. Management's focus on product innovation and an omni-channel distribution strategy is expected to enhance market share and drive long-term growth. However, the company faces challenges from commodity inflation and currency depreciation, which have impacted EBITDA margins. Despite these headwinds, the long-term outlook remains positive, supported by structural tailwinds such as increasing urbanization and rising middle-class incomes. Vista's financial outlook reflects stable revenue growth and margins, with a target price of ₹476.48 for the next 12 months, indicating an expected upside of 11%. The competitive landscape remains intense, but Eureka Forbes's strategic initiatives position it well for sustainable growth. Over the next 12-24 months, key opportunities include expanding its service ecosystem and leveraging AI for operational efficiency, while watchpoints include potential supply chain disruptions and sustained inflationary pressures that could affect margins
Why We Like This Stock
- Record revenue growth of 15.3% in Q1 FY27 driven by strong demand in water purifiers and robotics
- Management's strategic focus on product innovation and omni-channel distribution is expected to enhance market share
- Long-term structural tailwinds such as urbanization and rising incomes support sustained growth
Things To Watch Out For
- Commodity inflation and currency depreciation are pressuring EBITDA margins
- Intense competition may lead to pricing pressures affecting profitability
- Potential supply chain disruptions could impact production and consumer demand
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,189 | 2,437 | 2,709 | 2,841 | 3,053 |
| Profit Before Tax (Cr.) | 142 | 214 | 259 | 258 | 290 |
| PBT Margin | 6.5% | 8.8% | 9.6% | 9.1% | 9.5% |
| Net Profit (Cr.) | 98 | 156 | 192 | 190 | 213 |
| Earnings Per Share | 5.1 | 8.1 | 9.9 | 9.8 | 11.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Elara Capital | ▲ Buy | 630 | 14-Aug-2026 |
| Kotak Securities | ▲ Buy | 700 | 28-Jul-2026 |
| ICICI Securities | ▲ Buy | 600 | 20-May-2026 |
| HDFC Securities | ▲ Buy | 695 | 06-Apr-2026 |
Company Overview
Show Company Profile
Eureka Forbes Limited engages in manufacturing, trading, renting, selling, and servicing of vacuum cleaners, water filter cum purifiers, air purifiers electronic air cleaning systems, and related products in India and internationally. The company also offers water softeners and water solutions. It serves individual consumers, educational institutions, retail stores, households, banks, IT companies, hospitals, small and medium enterprises (SMEs), hotels, government organizations, and other commercial establishments. The company was formerly known as Forbes Enviro Solutions Limited and changed its name to Eureka Forbes Limited in February 2022. Eureka Forbes Limited was founded in 1982 and is based in Mumbai, India. The company operates as a subsidiary of Lunolux Limited.