Eureka Forbes Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹348.10+₹6.00 (+1.75%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Eureka Forbes Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Eureka Forbes Limited engages in manufacturing, trading, renting, selling, and servicing of vacuum cleaners, water filter cum purifiers, air purifiers electronic air cleaning systems, and related products in India and internationally.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees2,661

Annual revenue₹2,693 Cr

How does it make money?

Turns over ₹2,693 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 2,661 employees supports ₹1.01 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.01 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 4.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE17.1%

What is the outlook?

13 analysts covering the stock expect revenue to grow about 13.2% and earnings to grow about 28.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.2%

Est. earnings growth+28.9%

Analysts13

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +29% while net margin moved +374% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+29%

Margin effect+374%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 3.5% is weak

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

71/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

37.4x

2Y Median

67.4x

27 monthly readings · mean 80.4x · range 41.5x–130.2x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 44% below its 2y median of 67.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 45% below the peer median of 68.5x.

vs. its own history

Cheap

67.4x median over 27 months · -44%

vs. sector peers

Cheap

68.5x median of 3 peers · -45%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

19.9x

PEG

0.45

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 7.1% to 12.4% over 3 years.
Debt is being paid down
Total debt is down 79% over 3 years.
Return on capital is rising
ROCE has improved from 1.1% to 4.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 89% against revenue up 29% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 72% against revenue up 29% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.1% to 12.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 79% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 44% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 45% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 89% against revenue up 29%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 10%✓ 12.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.0% CAGR
Latest reported year was 15.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹162 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 4.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹6,741 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

37.4x

Fair

Fairly valued against the generic band

P/B Ratio

1.46x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹9.3

Profitable

Profitable on a per-share basis

ROE

3.5%

Weak

Weak capital efficiency

ROCE

4.0%

Weak

Low return on total capital employed

Debt/Equity

0.63x

Moderate

Moderate leverage

Revenue Growth (YoY)

15.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

47.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹162 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

23.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.2%

Average

Average margins

Net Margin

6.5%

Average

Average bottom-line conversion

Current Ratio

1.07

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.02

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

357.2 / 396.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,080 Cr	₹2,184 Cr	₹2,422 Cr	₹2,693 Cr	+9.0%
EBITDA	₹147 Cr	₹203 Cr	₹275 Cr	₹335 Cr	+31.4%
EBITDA Margin	7.1%	9.3%	11.3%	12.4%	—
PAT (Net Profit)	₹26 Cr	₹96 Cr	₹164 Cr	₹163 Cr	+83.1%
EPS	₹1.37	₹4.93	₹8.46	₹8.36	+82.7%
ROE	0.6%	2.3%	3.7%	3.5%	—
ROCE	1.1%	2.7%	4.2%	4.0%	—
Total Debt	₹140 Cr	₹39 Cr	₹26 Cr	₹29 Cr	-40.9%
Free Cash Flow	₹159 Cr	₹166 Cr	₹186 Cr	₹162 Cr	+0.6%

🟢 Revenue has grown at 9.0% a year over 3 years.

🟢 EBITDA has grown at 31.4% a year over 3 years.

🟢 EBITDA Margin has risen from 7.1% to 12.4% over 3 years (+5.3 pts).

🟢 PAT (Net Profit) has grown at 83.1% a year over 3 years.

🟢 EPS has grown at 82.7% a year over 3 years.

🟢 ROE has risen from 0.6% to 3.5% over 3 years (+2.9 pts).

🟢 ROCE has risen from 1.1% to 4.0% over 3 years (+2.9 pts).

🟢 Total Debt has shrunk at 40.9% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (0.6% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,735 Cr

Total Liabilities

₹2,135 Cr

Cash & Equivalents

₹126 Cr

Operating Cash Flow

₹250 Cr

Capex

-₹88 Cr

Shareholding (proxy)

Institutional Holding

12.2%

Insider Holding

65.3%

Analyst Consensus

Recommendations

13 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹618.46

+77.7% vs CMP

Target Range

₹547 – ₹790

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 positive1 mixed4 general

Eureka Forbes: Best Stock in Its Sector? Key Metrics

Univest, 25 Sept

UBS sees 45% upside in Eureka Forbes; says market under-appreciating stock

Business Standard, 13 Mar

Eureka Forbes Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Simply Wall Street, 16 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Eureka Forbes receives ₹273 crore GST show-cause notice from Uttar Pradesh tax authority

CNBC TV18, 28 Sept

Eureka Forbes Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

Eureka Forbes Q1 Results: Profit Jumps 46% On One-Time Gain, Revenue Up 15%

NDTV Profit, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Risk

WeakProfitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑