'Buy' Maintained On Eureka Forbes By ICICI Securities, Sees Upto 18% Upside

ICICI Securities Report

Stocks to Buy: We stay constructive on Eureka given strong business tailwinds. Maintain Buy with a DCF-based revised target price of Rs 735 (implied P/E of 73 times/62 times FY26E/FY27E earnings per share.

Eureka Forbes Ltd. has revamped its servicing business strategy and we believe its benefits are surfacing. These include:

1. It has, now, four different servicing plans with options to buy servicing for one, two or three years, instead of just one plan across consumers.

2. Rolled out an App that provides alerts to consumers about servicing. Billing/payment are online, and various checks are in place to reduce pilferage.

3. With digital investments, servicing costs are lower too. Eureka also offers 4% additional discount to consumers opting for requests via its App and

4. We believe, Eureka can invest the savings back into brand-building to drive revenue growth/market share.

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