@hitesh2710 – did you have a look at Eureka Forbes- demerged from Forbes company- headed by Mr Pota former head of jubilant food works. Fundamentally significant market share in both water purifier and vacuum cleaner. Though it’s just like any another home appliances businesses they have a steady state AMC business for water purifier as once their customer, Every year the customers have to shell out money to buy filters from them. It’s a must for the customers to change filters every few years- in a way a very good business if you ask me.
But all these years the management lacked focus as Seen by their lacklustre growth. Now after demerger, they are now debt free and renewed focus on the business after entry of Advent international and Mr Pota. Their latest credit report from CARE has upgraded them from BBB- to AA+.
The business is available at 4 times sales and price has been consolidating tightly in the range of 500-515.
If you haven’t looked at it, it warrants your attention and please give you opinion on it.
Biased coz of being customer of them for close to a decade and thought this to be one hell of business as I used to shell out 3000-4000 per year for the filters though upfront cost of new machine is 9000-10000 with one year warranty and hence invested recently
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