Stocks To Buy: Emkay expects shares of this conglomerate to double in 3-4 years

Brokerage firm Emkay Global has initiated coverage on Eureka Forbes, with a 'Buy' rating, on Friday, September 5.

Emkay has a price target of ₹725 on the stock, which implies a potential upside of 24% from Thursday's close. The brokerage added that the stock has the potential to double in the next three to four years.

Under new management, Eureka Forbes — a leading health and hygiene brand — is transforming its product and service portfolio while unlocking growth in underpenetrated categories such as water purifiers and vacuum cleaners, where it holds dominant market shares of 40% and 60%, respectively. The company is also entering adjacent categories.

A sharper focus on category-led campaigns, affordability (models starting from ₹6,500), and wider distribution (covering 20,000 pin codes) has driven seven straight quarters of double-digit growth, even as peers in other appliance segments faced softer demand.

Service momentum is also improving, with double-digit AMC bookings in Q1. Despite rising R&D and marketing spends, margins expanded 400 basis points over the past two years to 11% in FY25, though still below Kent's 15-20%, indicating further headroom.

Emkay expects revenue, EBITDA, and EPS CAGRs of 13%, 20%, and 24%, respectively, over FY25-28E, supported by a healthy net cash position of ₹250 crore.

Out of the nine analysts that have coverage on Eureka Forbes, eight have a 'Buy' rating, while one has a 'Hold' recommendation.

Shares of Eureka Forbes Ltd. ended Thursday's session, rising 2.34% at ₹601.05. The stock has risen nearly 8% in the last five trading sessions.

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