Eureka Forbes Ltd. share price target

Eureka Forbes targets to grow revenue by 2x 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.

Eureka reported its highest-ever EBITDA margin of 12.6% in Q2FY26 led by operating leverage and cost efficiencies. Revenue growth was broad-based across product and services.

Eureka Forbes reported strong set of numbers for 7th straight quarter. Eureka saw double-digit growth in the product business both in value and volume terms, despite a subdued demand backdrop.

Eureka has revamped its servicing business strategy and we believe its benefits are surfacing. These include: (1) It has, now, four different servicing plans with options to buy servicing for one, two or three years, instead of just one plan across consumers. (2) Rolled out an App that provides alerts to consumers about servicing

Eureka Forbes’ FY24 AR primarily highlights its transformational journey during phase-1. We note: (1) Strong investments in distribution expansion (at 36% CAGR over FY22 24) have started yielding positive results (volume growth and market share gains in FY24) and may continue to drive growth in FY24-26E. (2) The company is focusing on category creation to increase penetration.

An established ‘cash cow’, Eureka Forbes were the pioneers for introducing water purifier and
vacuum cleaner in India. Eureka Forbes has a long history of launching innovative products and
campaigns in India.