Hindware Home Innovation: Buy Signal! Target Price Jumps 15% – What Investors Must Know Now!

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Updated on 13 Nov 2025, 06:25 am

Choice Institutional Equities reiterates its BUY recommendation for Hindware Home Innovation, increasing the target price by 15% to INR 430. The brokerage anticipates robust financial performance from FY25 to FY28, projecting a Compound Annual Growth Rate (CAGR) of 13% for revenue and 30% for EBITDA in the Bathware segment. The Piping segment is also expected to see significant growth with an 11% volume CAGR and 20% EBITDA CAGR, fueled by an expected uptick in real estate and infrastructure projects. Furthermore, the Consumer Appliance business is forecast to improve its EBITDA margin to between 8.6% and 9.3% by FY28, recovering to FY23 levels as the company focuses on high-margin products. These factors contribute to an impressive consolidated EBITDA CAGR of 52% over the forecast period. The stock is valued using a 9x EV/EBITDA multiple on a one-year forward basis, considered conservative given the expected sharp improvement in Return on Capital Employed (ROCE) from 1.4% to 19.1% by FY28.

Impact This positive outlook and increased target price from a reputable brokerage could boost investor confidence, potentially leading to increased demand for Hindware Home Innovation shares. The forecast for growth in key segments and improved profitability suggests a potential upward trend in the stock price. Rating: 8/10

Difficult Terms: CAGR: Compound Annual Growth Rate, which measures the average annual growth of an investment over a specified period longer than one year. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance. EV/EBITDA: Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization, a valuation ratio used to compare companies. ROCE: Return on Capital Employed, a profitability ratio that measures how efficiently a company is using its capital to generate profits. PVC/CPVC: Polyvinyl Chloride (PVC) and Chlorinated Polyvinyl Chloride (CPVC) are types of plastic pipes used in construction.