- ICICI Securities raised Eureka Forbes target price to Rs 700 from Rs 685 with Buy rating
- Company aims to double revenue and triple EBITDA by FY30E, backed by growth strategy
- Eureka Forbes is expanding from water purifiers to health, hygiene, air, and robotics segments
ICICI Securities has reiterated its Buy rating on Eureka Forbes, raising the target price to Rs 700 from Rs 685, implying a 15% upside from the current market price of Rs 607. The brokerage highlights that the company has successfully transitioned from a turnaround phase to a “take-off” phase, backed by a multi-engine growth strategy across water purifiers, robotics, air purifiers, and water softeners.
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ICICI Securities Report
Eureka Forbes Ltd. targets to grow revenue by two times and Ebitda by 3x by FY30E. We believe the guidance is achievable provided positive macro tailwinds. – that was the chief takeaway from the investor meet.
Other takeaways:
Management reinforced the company's transition from a product-led water purifier brand to a broader health and hygiene player.
Management outlined a clear multi-engine growth strategy across water, cleaning, air and softeners, supported by sharper product positioning and customer awareness.
The service platform remains a strong competitive moat with digital tools and AMC growth strengthening recurring revenues.
It aims to achieve Rs 10,000 million of revenue from robotics segment by FY30E.
It reduced 60+ filter kits to 5 universal kits, which will be variant agnostic, thereby providing healthy growth headroom.
It will likely continue to focus on creating brand awareness through educating customer and sustained A&P spends.
Despite higher investment in A&P, capex and research and development, the company expects to achieve mid-teen Ebitda margin due to portfolio mix change and operating leverage.
Newer categories like air purifiers and water softeners provide a healthy runway for growth.
We note that Eureka's early bet on the robotics category has enabled it to deliver eight successive quarters of double-digit growth.
We believe that the company is structurally better placed for long-term growth, supported by integrated product-service-digital-led model. Maintain Buy.
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