Eureka Forbes stock jumps 8%, hits record high as brokerages highlight turnaround, multi-engine growth

Eureka Forbes

Eureka Forbes rose sharply on Friday, surging 8.4 percent to close at Rs 658 after touching an all-time high of Rs 668.3 during the session. The stock has gained about 14 percent in the past five trading days, extending a strong upward trajectory. At the close, the company’s market capitalisation stood at Rs 12,767 crore, and the stock traded at a P/E multiple of 68.94.

The rally in Eureka Forbes stock followed upbeat commentary from multiple brokerages this week after the company’s recent investor meet. The management presented a multi-engine growth strategy spanning water, cleaning, air and softeners, backed by sharper product positioning and greater customer awareness efforts.

ICICI Securities said the management’s long-term ambition to double revenue and triple EBITDA by FY30 appeared achievable, assuming favourable macro conditions. The brokerage noted that Eureka Forbes has reinforced its transition from a water-purifier-led business to a broader health and hygiene player, with clearly defined growth engines across water, cleaning, air and softeners.

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The brokerage also highlighted the company’s strong service platform -- supported by digital tools and annual maintenance contract (AMC) growth -- as a key competitive moat that strengthens recurring revenues. Other points included management’s target of Rs 1,000 crore revenue from the robotics segment by FY30, and the rationalisation of more than 60 filter kits into five universal kits, providing operational efficiencies and improving growth headroom.

ICICI Securities models revenue and PAT CAGRs of 12.7 percent and 20.9 percent over FY25-28 and maintains a 'buy' rating with a DCF-based target price of Rs 700.

Separately, HDFC Securities offered a detailed long-term view on the company in its coverage initiation. According to the report, Eureka Forbes has undergone a major turnaround under new management since its acquisition by Advent International, with improvements in growth, margins and strategic direction.

The brokerage highlighted the company’s strong market leadership in underpenetrated categories -- holding roughly 40 percent share in organised water purifiers and about 60 percent in vacuum cleaners -- both of which have low penetration and therefore significant long-term growth potential. The report also noted that EBITDA margins have expanded from 7 percent in FY23 to 11 percent in FY25, and to 12 percent in H1 FY26, with expectations of further improvement driven by operating leverage and cost optimisation.

HDFC Securities projects revenue, EBITDA and APAT CAGRs of 14 percent, 23 percent and 27 percent over FY25-28, supported by sustained momentum in water purifiers, recovery in services and strong traction in vacuum cleaners. It initiated coverage with a 'buy' rating and a target price of Rs 830 per share.

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