Buy Eureka Forbes, target price Rs 665: ICICI Securities

ICICI Securities has a buy call on Eureka Forbes with a revised target price of Rs 665 (Rs 735 earlier). The current market price of Eureka Forbes is Rs 480.5.

Eureka Forbes, incorporated in 2008, is a Small Cap company with a market cap of Rs 9335.37 crore, operating in the Consumer Durables sector.

Eureka Forbes' key products/revenue segments include Hygiene Products, Sale of services, Scrap and Other Operating Revenue for the year ending 31-Mar-2024.


Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 602.18 crore, down -10.99% from last quarter Total Income of Rs 676.53 Crore and up 11.00 % from last year same quarter Total Income of Rs 542.50 crore. The company has reported net profit after tax of Rs 35.03 crore in the latest quarter.

The company's top management includes Mr.Arvind Uppal, Mr.Pratik Rashmikant Pota, Mr.Sahil Dilip Dalal, Mrs.Gurveen Singh, Mr.Vinod Rao, Mr.Homi Adi Katgara, Mr.Shashank Shankar Samant. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2024, the company has a total of 19 crore shares outstanding.

Investment Rationale
ICICI Securities remains structurally positive on Eureka and model it to report revenue and PAT CAGRs of 12.9% and 29.1%, respectively, over FY24?27E. They maintain a BUY with a DCF-based revised target price of Rs 665 (Rs 735 earlier) with an implied P/E of 57x FY27E. Key risks include a steep increase in competitive pressures; and higher commodity prices.

Promoter/FII Holdings
Promoters held 62.56 per cent stake in the company as of 31-Dec-2024, while FIIs owned 12.55 per cent, DIIs 6.46 per cent.