Eureka Forbes has undergone a major turnaround under new management following Eureka's acquisition by Advent International, with notable improvements in both growth and margins. HDFC Securities expects the company to achieve revenue/Ebitda/APAT CAGRs of 14/23/27% respectively, over FY25–28E, led by sustained momentum in water purifiers, recovery in the service business, and strong traction in vacuum cleaners.
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HDFC Securities Institutional Equities
We initiate coverage with a 'Buy' rating on Eureka Forbes Ltd. and a target price of Rs 830 per share, valuing it at 45x Mar-28E AEPS (excluding non-cash intangible amortization and 50% of performance-based ESOP expenses).
Post its acquisition by Advent International in 2022, Eureka Forbes has undergone a major turnaround under the new management, rebounding from a decade of muted growth.
The product business CAGR has seen high teens in recent quarters, and the services segment is gaining momentum, as bookings have grown from double digits in Q1 FY26 to high teens in Q2 FY26.
We remain positive on Eureka's growth prospects, owing to its high brand equity, capable management team, and asset-light business model.
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