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Buy Eureka Forbes; target of Rs 650: ICICI Securities

ICICI Securities is bullish on Eureka Forbes recommended buy rating on the stock with a target price of Rs 650 in its research report dated March 20, 2024.

March 20, 2024 / 02:06 PM IST


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ICICI Securities research report on Eureka Forbes

Smaller players in the water purification market have introduced a differentiated offering – free servicing for initial 24 to 30 months. For Eureka Forbes, this may increase the cost of acquisition of new consumers, but we believe the concern is overdone as: 1) most of the variants introduced by smaller players are at a premium price point of INR10,000-plus, whereas Eureka is trying to drive growth at the bottom of pyramid with the launch of variant at INR6,499; 2) The pan-India industry penetration level is still ~5% (urban: 12%), which indicates healthy long-term growth potential for most incumbents; 3) Eureka continues to benefit from strong brand equity and established distribution.


We also note players such as Havells, Tata Swacch and V Guard have failed to gain more than 5% market share in water purifiers, indicating Aquaguard’s strong brand equity. Given strong business tailwinds, we remain constructive on Eureka Forbes. Maintain BUY with a DCF-based unchanged TP of INR 650.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Eureka Forbes - 20032024 - isc

Broker Research
first published: Mar 20, 2024 12:43 pm

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