Eternal Ltd, formerly known as Zomato, saw its shares jump by 4 percent during early trade this Wednesday. This spike occurred after the company released its Q4 financial results, which significantly outperformed market expectations. Investors responded positively to the news, pushing the stock price to Rs 262.3. Consequently, the company is seeing renewed interest from major global brokerages.
The firm reported a consolidated net profit of Rs 174 crore for the quarter. This represents a massive 71 percent jump compared to the previous quarter. Furthermore, this figure easily beat the analyst estimate of Rs 121 crore. The impressive growth came primarily from Blinkit, the company’s quick-commerce unit, along with steady gains in its traditional food delivery business.
Brokerages Remain Bullish on Eternal Ltd Growth
Most top financial brokerages have maintained their positive ratings on the stock. They are particularly impressed by the improving profitability and the long-term visibility of the quick commerce segment. For instance, CLSA kept its “outperform” rating with a high target price of Rs 505 per share.
According to CLSA, Blinkit’s net order value rose by an incredible 95 percent year-on-year. Moreover, the number of monthly transacting users exceeded what experts had predicted. The firm noted that its confidence in the Blinkit business model is now stronger than ever. This is because the unit is proving it can grow while also becoming more profitable.
Analyzing Target Prices and Future Projections
While the overall mood is positive, different brokerages have slightly different outlooks on the exact target price. Jefferies maintained its “buy” rating but decided to lower its target to Rs 400. They pointed out that while profitability is improving, growth was somewhat modest this time due to seasonal factors. Nevertheless, the management expects a 60 percent growth rate over the next three years.
- HSBC: Maintained a “buy” call with a Rs 300 target. They expect a big pickup in quick commerce soon.
- InCred Capital: Reiterated an “add” rating with a target of Rs 383. They praised the company’s leadership but warned about rising competition.
- DAM Capital: Kept a “buy” rating with a Rs 330 target. They highlighted that Blinkit has already reached adjusted EBITDA profitability.
Potential Risks and Market Outlook
Despite the celebration, some experts are still advising a bit of caution. DAM Capital mentioned that margins in the food delivery sector might stay within a narrow range for a while. Additionally, the increasing competition in the quick commerce space could become a challenge in the future.
However, the current numbers show that Eternal Ltd is navigating these challenges well. The massive increase in net sales to Rs 17,292 crore for the year shows the scale at which the company is now operating. As the business continues to expand its reach, investors will be watching closely to see if the Eternal Ltd stock performance can maintain this upward momentum throughout 2026.