The shares of the company, a prominent health and hygiene brand in India gained traction this week following a 36% upside by Kotak Institutional Equities.
On Wednesday, Eureka Forbes Ltd shares were trading at ₹500 per share, up 1.46 percent from the previous close on the Bombay Stock Exchange. The company has a market capitalization of ₹9,676 crore.
Eureka Forbes Ltd operational revenue has declined by 9 percent year on year from ₹592 crore in Q3FY23 to ₹539 crore in Q3FY24, while net profit has declined by 8 percent from ₹ 25 crore to ₹23 crore.
Eureka Forbes Ltd shares have gained 8.6 percent in a month and 4.5 percent in a year.
The company has achieved a double-digit revenue growth year on year from a negative of 8.9% in Q3FY23 to 14.1% in Q3FY24.
Eureka Forbes Limited (EFL) is a part of the Shapoorji Pallonji group and is engaged in the health & hygiene segment with product profiles comprising water purifiers, vacuum cleaners, air purifiers, and home security systems.
The company markets its brand under the brand umbrella like Dr. Aeroguard, Aeroguard, Forbes Health Conditioners and Air Purifiers; and EuroVigil security solutions.
Kotak Institutional Equities has given a buy call on Eureka Forbes Ltd. The brokerage has given the target price of ₹680 per share, representing an upside of 36 percent from Wednesday’s trading price of ₹500 per share.
The brokerage said that the company’s volume growth was excellent despite a weak base in the third quarter and expects Margin expansion and cash generation will continue to provide benefits in the future.
Kotak Institutional projects a 13% growth in EPS for FY2024 and a 5-6% growth for FY25-26, attributing it to the company’s momentum and premium products in the AMC business.
Written by Omkar Chitnis
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