Eureka Forbes Poised For High-Growth Phase, Says ICICI Securities Maintaining Buy — Check Revised Target Price

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..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..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..Click on the attachment to read the full report:.OMCs Stocks To Buy: ICICI Securities Bets On BPCL, Indian Oil, HPCL Remains Top Pick On Attractive Valuations.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Eureka Forbes Poised For High-Growth Phase, Says ICICI Securities Maintaining Buy — Check Revised Target Price

ICICI Securities believes that Eureka Forbes is structurally better placed for long-term growth, supported by integrated product-service-digital-led model, hence maintains Buy.

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