BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Eureka Forbes Ltd. scores well on important parameters to be a structural compounder. It has-
established brands like Eureka Forbes, Aquaguard and Select,
multi-channel presence with access to 20,000 retail outlets and 10,000 plus pin codes,
large product portfolio to cater to consumer needs like storage, hot water, copper/zinc benefits and non-electric water purifier and
strong return on invested capital.
It is investing to expand margins (10% in Q1 FY24) which we believe will likely release resources for growth. Launch of a variant at entry price point of Rs 6,499 will lead to consumer trials.
Distribution expansion and focus on services also offer growth and margin tailwinds.
Worsening air and water pollution levels in India, limited presence of multi national company brands and failure of new entrants to gain 5% plus market shares provide it a competitive edge.
Induction of Pratik Pota (Managing Director and Chief Executive Officer), Gaurav Khandelwal (Chief Financial Officer) and senior industry personnel has expanded management bandwidth; Initiate with 'Buy'.
Key risks are steep inflation in commodity prices and increase in competitive pressures and failure of new product launches.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
