Eureka Forbes Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Eureka Forbes Ltd trades at ₹459, in a downtrend and 21 weeks into that stage. That is −9.3% against its own 200-day average. It sits at 13% of a 52-week range of ₹430 to ₹652. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (15 weeks and counting).

Today the stock is in a downtrend — week 21 of stage 4, confirmed. At ₹459 it trades −9.3% versus its 200-day average and sits at 13% of its 52-week range (₹430–₹652).

Against the market, two honest reads. Cumulative: over the last 4.3 years the stock moved +22% while the NIFTY 500 moved +57% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (15 weeks and counting; last ahead the week of 2026-05-08) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 2nd percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Eureka Forbes Ltd trades at 43.4× P/E, about the cheapest it has ever traded. Its long-run median P/E is 83.3×, measured across 3.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 43.4× is about the cheapest it has ever traded, against a long-run median of 83.3× measured over 3.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved −1.1% against a −17.9% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 3y, of the −3.4%/yr price move, ~+50.4%/yr came from earnings growth and ~−53.8 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Eureka Forbes Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE holding at 4.1% — the per-curve reads carry the story. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

60.1/100 — rank 2 of 13 in Consumer Electronics · 90% evidence confidence

Eureka Forbes Ltd scores 60.1 out of 100 against the 13 companies it is compared with in Consumer Electronics, ranking 2. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 22.6 + 14.8 + 15.6 + 7.1 = 60.1. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Eureka Forbes Ltd reported ₹684 Cr of revenue in the Mar 26 quarter, +11.6% year on year. That is the 11th straight quarter of year-on-year growth. Over 10 years it has compounded at 58.0% a year. The last full year, FY26, came in at ₹2,709 Cr. The last four reported quarters add to ₹2,709 Cr.

Eureka Forbes Ltd reported ₹684 Cr of revenue in the Mar 26 quarter, +11.6% year on year. That is the 11th straight quarter of year-on-year growth. Over 10 years it has compounded at 58.0% a year. The last full year, FY26, came in at ₹2,709 Cr. The last four reported quarters add to ₹2,709 Cr.

FY26 revenue came in at ₹2,709 Cr (+11.2% on the year), capping 10 years at 58.0% compound. The latest quarter (Mar 26) printed ₹684 Cr, +11.6% year on year — the 11th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +11.0% growth against the decade's 58.0% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +11.2% over the last 4 quarters against +11.2%/yr over the last 8 — stabilising; TTM profit −0.6% vs +31.0%/yr — rolling over.

→ Revenue grew — did margins hold as it scaled? Next: 13.0% this quarter (+0.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Eureka Forbes Ltd's operating margin is 13.0% in the Mar 26 quarter, +0.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 11 fiscal years the operating margin has ranged −17.0% to 12.0%. The current quarter is running above every full year in that window.

Eureka Forbes Ltd's operating margin is 13.0% in the Mar 26 quarter, +0.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 11 fiscal years the operating margin has ranged −17.0% to 12.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 13.0%, +0.0 pp against the same quarter a year ago. Across 11 fiscal years the operating margin has ranged −17.0%–12.0%, and FY26's 12.0% is the top of that band — a record year.

🚨 Why the margin moved: operating margin went −0.1 pp year on year while gross margin went −0.7 pp — the loss came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

→ Margins held — did that reach the bottom line? Next: profit +4.1% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Eureka Forbes Ltd earned ₹51.0 Cr of net profit in the Mar 26 quarter, +4.1% year on year. Full-year FY26 profit was ₹163 Cr. That is 7.5% of the quarter's revenue. The same quarter a year earlier earned ₹49.0 Cr.

Eureka Forbes Ltd earned ₹51.0 Cr of net profit in the Mar 26 quarter, +4.1% year on year. Full-year FY26 profit was ₹163 Cr. That is 7.5% of the quarter's revenue. The same quarter a year earlier earned ₹49.0 Cr.

Mar 26 profit was ₹51.0 Cr, +4.1% year on year. On the full year, FY26 printed ₹163 Cr (−0.6%).

Why profit moved: revenue contributed +11.6% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit −3.5% vs revenue +11.0%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 163% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 163% of Eureka Forbes Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹250 Cr of operating cash against ₹163 Cr of profit. After ₹115 Cr of capital spending, ₹135 Cr was left as free cash.

FY26: operating cash of ₹250 Cr against reported profit of ₹163 Cr, leaving free cash of ₹135 Cr after ₹115 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 163% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 163%: the cash cycle stretched 117 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

→ So follow the cash to where it goes. Next: a 80-day cycle and ₹217 Cr of building.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Eureka Forbes Ltd's cash conversion cycle runs 80 days in FY26, up from −37 days in FY21. Capital spending ran ₹217 Cr over the last 3 years. At FY26 sales of ₹2,709 Cr each day of that cycle holds about ₹7.4 Cr, so roughly ₹594 Cr sits inside the business at any moment.

FY26: debtors at 31 days, inventory at 125 days — roughly 4.1 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 80 days, looser than FY21's −37.

The full loop: cash goes out to suppliers and production on day 0; stock waits 125 days to sell; customers pay about 31 days after that; and suppliers themselves are paid at 76 days — netting out to the 80-day cycle.

In money terms: at FY26 sales of ₹2,709 Cr, each day of the cycle holds about ₹7.4 Cr — so the 80-day loop keeps roughly ₹594 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹217 Cr over the last 3 fiscal years against ₹181 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 6% and the ROIC − WACC spread is −7.7 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Eureka Forbes Ltd earns a ROCE of 6% in FY26. That is up from a trough of −58% in FY21. Return on invested capital clears the cost of that capital by −7.7 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 6.0% net margin on 0.40× asset turns.

FY26 ROCE is 6%, recovered from a FY21 trough of −58% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 6.0% net margin × 0.40× asset turns × 1.46× balance-sheet leverage ≈ 3.5% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 4.3% − 12.0% = a −7.7 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.01.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Eureka Forbes Ltd carries total debt of ₹29.0 Cr against shareholder equity of ₹4,600 Cr as of Mar 26, a debt-to-equity of 0.01 — effectively unlevered. On the annual view that ratio went from 0.06 in FY22 to 0.01 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹29.0 Cr against shareholder equity of ₹4,600 Cr — a debt-to-equity of 0.01. On the annual view, debt-to-equity went from 0.06 (FY22) to 0.01 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: the register is quiet.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Eureka Forbes Ltd moved a full percentage point over the last two years — the register is quiet. Promoters moved +0.0 points over the same window, to 62.5%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +0.4 points over 8 quarters to 6.7%; Promoters: +0.0 points over 8 quarters to 62.5%; Foreign institutions: +0.0 points over 8 quarters to 13.2%.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Eureka Forbes Ltd: the Z-score reads 3.67. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 3.67 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 3.67.

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