Eureka Forbes block deal: Company's shares jump over 6% as 9.3% equity changes hands

Eureka Forbes block deal: Shares of Eureka Forbes, a household name in water filters, surged as much as 6.66 per cent in the opening trade to Rs 544, as, according to a Zee Business report, 9.3 per cent equity changed hands in a block deal in the pre-opening session.
 
For the Rs 1,150 crore block deal, the floor price was fixed at Rs 494.75 apiece as against the stock's previous day's closing price of Rs 510.
 
The promoter entity Lunolux, as per reports, was planning to divest its 12 per cent stake in the company via a block deal at a nearly 3 per cent discount to the current market price.

The company's Q3FY24 results, which were released last week, showed a year-on-year (YoY) revenue increase of 14.1 per cent in Q3FY24, amounting to Rs 538.6 crore, with the continuing business posting 16.8 per cent growth.

The adjusted EBITDA showed a significant rise of 28.6 per cent compared to Q3 FY23, reaching Rs 52.9 crore. The adjusted EBITDA margin also improved by 111 basis points, indicating a more profitable quarter. The PAT skyrocketed by 131.3 per cent YoY, settling at Rs 22.7 crore compared to Rs 9.8 crore in the same quarter of the previous fiscal year.

Further, when adjusted for pre-ESOP expenses, PAT increased by an impressive 213.5 per cent YoY to Rs 30.7 crore.

The stock of the company has largely given a steady return to the tune of just over 4 per cent as against Nifty's return of 24 per cent.

The consumer electronics company trades at a high price to earnings, with a trailing twelve-month P/E of 102.5.

Trendlyne data shows that the stock has a 'buy' recommendation from four analysts, with three of them suggesting a 'strong buy', while the average 1-year target is set at Rs 625, suggesting a 24 per cent potential upside.