Target: ₹830
CMP: ₹607.45
Eureka Forbes Ltd has been initiated with a Buy rating and a target price of ₹830 per share, reflecting a valuation of 45 times the estimated AEPS for March 2028, excluding intangible amortization and half of performance-linked ESOP costs.
Since its acquisition by Advent International in 2022, the company has experienced a significant turnaround under new management, recovering from a long period of stagnation. The product segment has recorded a compounded annual growth rate (CAGR) in the high teens over recent quarters, while the services division is gaining traction, with bookings increasing from double-digit growth in the first quarter of FY26 to high teens in the second quarter.
The outlook for Eureka remains positive, supported by its strong brand equity, capable management, and an asset-light business model. Projections indicate that the company will achieve revenue, EBITDA, and APAT CAGRs of 14%, 23%, and 27% respectively from FY25 to FY28, bolstered by ongoing growth in water purifiers, a recovery in the services sector, and robust sales of vacuum cleaners. Consequently, Eureka Forbes is considered a top choice within the consumer durables sector.
However, potential risks include intense competition, a possible sale of promoter stake, changes in promoter influence that could affect growth, the departure of key managerial personnel, industry slowdowns, and the recovery of the services business.
Published on November 27, 2025
