Eureka Forbes Ltd.
ISIN: INE0KCE01017 • Market Cap: ₹8,127 Cr
The 5-Pillar Quality Audit for Eureka Forbes Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (11.5%), Return on Capital Employed (4.7%), and equity compounding (3.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (8.6%) and 3Y PAT CAGR (23.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 44.92 vs PEG of 2.51 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 62.5%, backed by 20.6% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
High-Velocity Profit Compounding (3Y PAT CAGR: 23.7%)
Net earnings have compounded at 23.7% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 4.7%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Sectoral & Macro Headwinds (Consumer Durables)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Durables space.
Quantitative Strategy Eligibility
Checking EUREKAFORB against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 62/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Consumer Durables Sector Peer Comparison
Compare EUREKAFORB directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Eureka Forbes Ltd. (EUREKAFORB)Current | 62/100 | ₹8,127 Cr | 44.92 | 4.7% | 0.00 | — |
| Titan Company Ltd. (TITAN) | 70/100 | ₹4.50 Lakh Cr | 78.05 | 39.2% | 1.76 | View |
| Asian Paints Ltd. (ASIANPAINT) | 67/100 | ₹2.51 Lakh Cr | 52.73 | 24.4% | 0.11 | View |
| LG Electronics India Ltd. (LGEINDIA) | 65/100 | ₹1.12 Lakh Cr | 61.16 | 28.4% | 0.00 | View |
| Dixon Technologies (India) Ltd. (DIXON) | 82/100 | ₹88,626 Cr | 47.21 | 30.1% | 0.07 | View |
| Havells India Ltd. (HAVELLS) | 70/100 | ₹80,202 Cr | 49.11 | 22.7% | 0.00 | View |
Frequently Asked Questions: Eureka Forbes Ltd.
Q:What is the 5-Pillar Fundamental Score for Eureka Forbes Ltd. (EUREKAFORB)?
Eureka Forbes Ltd. has a RupeeTools Fundamental Score of 62/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (37/100), Financial Health (84/100), Growth (72/100), Valuation (40/100), and Ownership Quality (78/100).
Q:Is EUREKAFORB fundamentally strong for long-term investment?
EUREKAFORB currently holds a moderate quality rating of 62/100. While it operates in the Consumer Durables sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does EUREKAFORB pass the Coffee Can Investing filter?
No. EUREKAFORB does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does EUREKAFORB compare against other Consumer Durables peers?
Within India's Consumer Durables sector, EUREKAFORB trades at a P/E of 44.92 and generates an ROCE of 4.7%. Compare its 5-Pillar score of 62/100 against top sector peers like Titan Company Ltd. (70/100), Asian Paints Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.