Eureka Forbes rallies 10%, hits new high; brokerages see more upside

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Eureka Forbes share price today

 

Shares of Eureka Forbes hit an all-time high of ₹668.50, as they rallied 10 per cent on the BSE in Friday’s intra-day trade amid heavy volumes owing to healthy growth prospects. The stock price of the household appliances company surpassed its previous high of ₹655.90 touched on May 30, 2025. In the past three weeks, the stock price of Eureka Forbes has appreciated by 25 per cent.

 

At 01:02 PM; Eureka Forbes share was quoting 8 per cent higher at ₹658.45, as compared to 0.08 per cent rise in the BSE Sensex. The average trading volume at the counter jumped over eight-fold with a combined 3.7 million equity shares changing hands on the NSE and BSE.  CATCH STOCK MARKET UPDATES TODAY LIVE

Brokerages see more upside in Eureka Forbes

 

Eureka Forbes is India’s leading health and hygiene brand. The company is today a multi-product and an omni-channel organization. Eureka Forbes’ product portfolio encompasses water purification, vacuum cleaning and air purification.

 

In an uncertain and evolving external environment, the July to September 2025 quarter (Q2FY26) was an exciting milestone quarter for the company. Eureka delivered a strong revenue growth of 14.9 per cent year-on-year (YoY) and earnings before interest, tax, depreciation and amortisation (EBITDA) crossed ₹100 crore for the first time at a lifetime high margin of 13.1 per cent. With this quarter, Eureka has delivered double-digit product growth in every single quarter in the last two years.

 

The brokerage firm predicts upside up to 24 per cent in Eureka Forbes stock price. Analysts’ positive view stems from Eureka’s strong market leadership in highly underpenetrated categories, its high brand equity, capable management team, and asset-light business model.

 

Eureka has undergone a major turnaround under new management following Eureka’s acquisition by Advent International, with notable improvements in both growth and margins. Analysts at HDFC Securities expect Eureka to achieve revenue/EBITDA/APAT CAGRs of 14/23/27 per cent respectively, over FY25–28E, led by sustained momentum in water purifiers, recovery in the service business, and strong traction in vacuum cleaners. Given these, Eureka Forbes is top pick of the brokerage firm within the consumer durable sector.

 

Analysts remain positive on Eureka’s growth prospects, owing to its high brand equity, capable management team, and asset-light business model. The brokerage firm has initiated coverage with a BUY rating and a target price of ₹830 per share, valuing it at 45x Mar-28E AEPS (excluding non-cash intangible amortization and 50 per cent of performance-based ESOP expenses).  ALSO READ | Tanfac Industries shares zoom 7% on securing this deal from Krishna Organic 

Analysts at Emkay Global Financial Services have a BUY rating on Eureka with target price of ₹725, with the stock price having the potential to double in 3-4 years.

 

Under the new management, Eureka (a leading health and hygiene brand) is transforming products/services and unlocking significant growth in highly underpenetrated categories of water purifiers/vacuum cleaners (Eureka pioneered these and leads with ~40 per cent/60 per cent market shares, respectively), entering adjacent categories. Focus on category-led campaigns, affordability (models from ₹6.5k), and distribution (~20k pin codes) led to 7 straight quarters of double-digit growth despite weak sentiment/softness among peers in the other appliance category, the brokerage firm said as it initiated coverage on September 4, 2025.

 

Analysts at Nuvama Institutional Equities estimate Eureka to post a strong EPS CAGR of 31 per cent over FY25–28E (73 per cent CAGR in FY23–25) on the back of strong top-line growth (14 per cent CAGR); operating margin expansion (modest gross margin improvement and operating leverage); and growing treasury income (higher cash and bank balance). This is higher than FMEG companies’ median EPS CAGR of 19 per cent over FY25–28E.

 

Moreover, Eureka benefits from significant under-penetration of categories (less than 2–6 per cent versus 60 per cent-plus for most FMEG categories), thereby implying sustained long-term growth; and distinct market share dominance in categories such as electric water purifiers (EWP) and vacuum cleaners (VC). The brokerage firm has a ‘BUY’ rating on Eureka with a target price of ₹700. Key risks include delays in or suboptimal pay-off from ‘After sales service’ revamp and irrational competitive intensity.  ==================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.