Smallcap stock: Water, air purifier maker up 15% in a week; worth buying?
Stock analysts have targets in the range of Rs 700-780 apiece on the stock. On Monday, the scrip was trading at 659.95 on BSE, up 1.20 per cent. The stock is up 15 per cent in a week.
- Dec 1, 2025,
- Updated Dec 1, 2025 9:56 AM IST
A host of brokerages have suggested 'Buy' rating on smallcap Eureka Forbes, as its management provided its maiden medium-term guidance for FY26–30. The company management projected an organic revenue to grow at a 17–18 per cent compounded annually, implying a doubling of revenue in four years. It also anticipated its adjusted Ebitda to expand at a 23–24 per cent, or roughly a three-fold increase, even as it continued to invest in capex, research and advertising and promotion. Stock analysts have targets in the range of Rs 700-780 apiece on the stock.
On Monday, the scrip was trading at 659.95 on BSE, up 1.20 per cent. The stock is up 15 per cent in a week.
"We reckon revenue, Ebitda and PAT CAGR of 15 per cent, 27 per cent and 34 per cent, respectively, over FY25–28. Maintain ‘BUY’ with a December 2026 target of Rs 780 (earlier Rs 750) based on 42 times December 2027 EPS; this implies 20 PER CENT-plus compounding over three–four years," Nuvama said.
ICICI Securities said despite higher investment in A&P, capex and R&D, the company expects to achieve mid-teen Ebitda margin due to portfolio mix change and operating leverage. Newer categories like air purifiers and water softeners provide a healthy runway for growth, it said.
"We note that Eureka’s early bet on the robotics category has enabled it to deliver eight successive quarters of double-digit growth. We believe that the company is structurally better placed for long-term growth, supported by integrated product-service-digital-led model," it said while suggesting a revised target of Rs 700.
With penetration still low across its core categories and with the unlocking of various opportunities, the company is confident to achieve 18 per cent CAGR revenue and 24 per cent Ebitda CAGR over FY2530. "Given its strengthened fundamentals, structural growth runway, and improving profit trajectory, we continue to maintain BUY rating with an unchanged target price of Rs 701, valuing the stock at 45 times its H1FY28E EPS," Antique Stock Broking said.
JM Financial has maintained its positive stance on Eureka Forbes amid newer growth drivers and execution capabilities. With product business momentum sustaining, likely uptick in service business revenue over the next few quarters can lead to further rerating, it said while suggesting a target of Rs 730.
A host of brokerages have suggested 'Buy' rating on smallcap Eureka Forbes, as its management provided its maiden medium-term guidance for FY26–30. The company management projected an organic revenue to grow at a 17–18 per cent compounded annually, implying a doubling of revenue in four years. It also anticipated its adjusted Ebitda to expand at a 23–24 per cent, or roughly a three-fold increase, even as it continued to invest in capex, research and advertising and promotion. Stock analysts have targets in the range of Rs 700-780 apiece on the stock.
On Monday, the scrip was trading at 659.95 on BSE, up 1.20 per cent. The stock is up 15 per cent in a week.
"We reckon revenue, Ebitda and PAT CAGR of 15 per cent, 27 per cent and 34 per cent, respectively, over FY25–28. Maintain ‘BUY’ with a December 2026 target of Rs 780 (earlier Rs 750) based on 42 times December 2027 EPS; this implies 20 PER CENT-plus compounding over three–four years," Nuvama said.
ICICI Securities said despite higher investment in A&P, capex and R&D, the company expects to achieve mid-teen Ebitda margin due to portfolio mix change and operating leverage. Newer categories like air purifiers and water softeners provide a healthy runway for growth, it said.
"We note that Eureka’s early bet on the robotics category has enabled it to deliver eight successive quarters of double-digit growth. We believe that the company is structurally better placed for long-term growth, supported by integrated product-service-digital-led model," it said while suggesting a revised target of Rs 700.
With penetration still low across its core categories and with the unlocking of various opportunities, the company is confident to achieve 18 per cent CAGR revenue and 24 per cent Ebitda CAGR over FY2530. "Given its strengthened fundamentals, structural growth runway, and improving profit trajectory, we continue to maintain BUY rating with an unchanged target price of Rs 701, valuing the stock at 45 times its H1FY28E EPS," Antique Stock Broking said.
JM Financial has maintained its positive stance on Eureka Forbes amid newer growth drivers and execution capabilities. With product business momentum sustaining, likely uptick in service business revenue over the next few quarters can lead to further rerating, it said while suggesting a target of Rs 730.