Synopsis:
Eternal has bagged mixed reactions from the bmarket with multiple brokerages citing their viewpoints on higher customer acquisition costs. However, CLSA expects the stock to rise by another 35%.
The shares of this leading food services aggregator are in focus after multiple brokerages reacted to its financial performance. In this article, we will dive deeper into what brokerages feel about it.
With a market capitalization of Rs 3,31,082 crore, the shares of Eternal Ltd made a day low of Rs 333.75 per share, down by 4 percent from its previous day closing price of Rs 348.40 per share. In the last one year, the stock has delivered a positive return of 27 percent, outperforming NIFTY 50’s return of 4 percent.
Analyst Comments
CLSA has maintained its high-conviction outperform rating on Eternal and has assigned a target price of Rs 450 per share, signaling an upside potential of 35 percent from its current market price of Rs 333.75 per share.
The brokerage added that Blinkit delivered a much stronger-than-expected Q2 FY26 performance, with higher orders, users, and average order values increasing its net order value beyond estimates. Though profits were lower due to higher spending on customer acquisition, CLSA believes this was a smart long-term move. The company remains confident of doubling Blinkit’s order value by FY27 and expanding to 3,000 stores
On the other hand, Emkay Global Financial has a Buy call on the stock, with a target price of Rs 430, signaling an upside potential of 29 percent from its current market price of Rs 333.75 per share. The brokerage cited similar reasons for its bullishness and added that the company should focus on market share rather than profitability.
Goldman Sachs raised its target price from the earlier assigned Rs 360 to Rs 390, signaling an upside potential of 17 percent from its current market price of Rs 333.75 per share. The brokerage cited that its growth missed estimates and expects market share gain in the quick commerce segment.
Morgan Stanley, on the other hand, however, assigned a target price of Rs 330, signaling a downside potential of 1.1 percent from its current market price of Rs 333.75 per share. The brokerage cited that its growth meets estimates.
Q2 Results
Eternal Limited reported Rs. 13,590 crore in revenue for the second quarter of FY26, a 183 percent increase over the Rs. 4,799 crore for the same period in FY25. It increased by 90 percent as compared to Rs. 7,167 crore in Q1 FY26.
The consolidated net profit for the second quarter of FY26 was Rs. 65 crore, which was 63 percent lower than the Rs. 176 crore reported in the Q2 FY25, but it increased by 160 percent from Rs. 25 crore in Q1 FY26.
Eternal Limited, formerly known as Zomato Limited, was founded in 2008 and is based in Gurugram, India. The company operates a range of e-commerce platforms catering to restaurants, quick commerce merchants, delivery partners, theatres, and event organizers across India and abroad.
Written by Satyajeet Mukherjee
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