Eureka Forbes

• Volume growth & Strong sales growth for their Product business – High teens growth

• Water purifiers has picked up for Eureka. Well placed wrt Price points for various variants.

• Innovations via new management. Has doubled R&D – 2x life is gaining traction – market share gains too. Very innovative. Steel tanks vs legacy plastic storage tanks in water filter.

• A&P spends grew FY24. Operating leverage as a key source.

• AMCs ownership vs legacy service technicians taking ownerships.

• Business operates with a -ve working capital. (Cash and carry model largely)

(Eureka has lost market share in the past. Management has turned around some of the lost grounds. Otherwise eureka has been slow to act in the past)

• health conscious Consumption as a theme.

• Many utility enablers will help the water purifier category.

• Penetration can double in next 5Y

• Clean Water as a theme given the ambition to have clean water at home and ppl picking up new variants for newer homes.

• Newer homes will like the new innovations by eureka (Slim tech, Insta Blaze for Green tea lovers, under the counter offering with wheels)

• Competition was very active during the last 2 decades Kent LG Dyson
  caused havoc to eureka’s market share.

• Do Note Aquaguard has a top-of-mind awareness.

Other categories

• Robotics : can chart same trajectory as Washing machines. Eureka is market leader in robotics. 2x’ed revenues. BIS implementation is about 6 months.
• Air purifiers : Won’t say much coz i just saw the air quality first hand entering delhi this morning.
• Vacuum cleaners : need for VCs is slowly but surely changing. Augers well with new office spaces opening up too as they also use VCs.

I think today’s beating of stock was out of proportion.

Hammering stock below the BV, & to it’s 52 W low.

I have seen this stock in past when it was garnering revenues of under 8k cr with NPAs in terms of percentage level equivalent or worse than today.
Yet trading at better valuations.

It looks like no one wants to touch this stock at any value.

Announcement for ValuePickr Community AMA Session:

Join Our Exclusive AMA on the Emerging Solar Sector! Fri 25 Oct, 2024 3-5 pm

We’re excited to invite the ValuePickr community to an Ask Me Anything (AMA) session, where the Team at Oaklane Capital Management LLP (of @KuntalShah fame) will share insights from over two years of in-depth research into the solar energy industry.

Please watch this space for links to presentations/detailed reports

If you’re curious about emerging trends, key industry players, or growth opportunities in the renewable energy space, this session is for you!

What to Expect:
Exclusive insights on trends and findings from our latest solar industry report.
Key investment opportunities and market dynamics, including industry structure, tariffs, entry barriers, pricing, and supply-demand trends.

An in-depth look at the Chinese and US solar ecosystems and their global impact.

A chance to ask anything about our research, findings, and outlook for the future of solar energy.
Date & Time: Friday 25/10/2024, between 3-5 PM

How to Participate: Visit ValuePickr page for the event and post your questions in the AMA Solar Industry in India googledoc.

Tag anyone who might be interested in renewable energy investing or deep market research!
We look forward to an engaging and insightful session !!

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Those who want to contribute to asking relevant questions (post some homework of our own) may use the following googledoc to upload queries

Check both the apps and compare

How can prices remain same? Dmart optimises only for price. How can qcomm offer the same prices while providing delivery, such large assortment and what not