Eternal Share Price: Zomato parent stock in focus after Q1 profit surge; Brokerages see 41% upside – Markets

Eternal Share Price: Eternal Limited, the parent company of food delivery platform Zomato, will be in focus during today’s (July 23) trading session after the company reported a nearly four-fold jump in consolidated net profit.

The share price of Eternal settled over 1.2 per cent lower, declining Rs 3.3 to Rs 283.40 on the BSE in the previous session. (Zomato Share Price)

Additionally, consolidated revenue from operations in the first quarter of FY27 stood at Rs 20,211 crore, compared with Rs 7,167 crore in the year-ago period.

Zomato’s segment-wise revenue showed a mixed but largely positive performance, with food delivery revenue rising 13.2 per cent to Rs 3,100 crore, ahead of estimates. Hyperpure supplies revenue increased 5.7 per cent to Rs 1,034 crore, in line with expectations.

Quick commerce revenue grew 18.4 per cent to Rs 15,664 crore, broadly matching estimates, while Going Out revenue climbed 14.8 per cent to Rs 318 crore, outperforming expectations.

Morgan Stanley Retains Overweight

The brokerage upgraded its estimates for food delivery and quick commerce, citing faster customer growth, lower marketing costs, improved take rates, and higher order values. It expects quick commerce margins to reach the upper end of 5-6 per cent.

Emkay Sees 41 per cent Upside

Emkay maintained its BUY rating on Eternal with a target price of Rs 400, implying an upside of nearly 41 per cent, citing strong execution across businesses.

The brokerage highlighted that Blinkit’s NOV rose 86 per cent year-on-year, supported by higher volumes and store expansion, while food delivery profitability improved with EBITDA growth and stronger margins.

Additionally, Blinkit and Hyperpure turned profitable, reinforcing improving unit economics and long-term earnings potential.

Goldman Sachs Maintains BUY

Goldman Sachs maintained its BUY rating on Eternal with a target price of Rs 345, reflecting an upside of 22 per cent for the stock.

The brokerage noted that Blinkit’s EBITDA margins expanded for the fifth consecutive quarter, with management expecting the trend to continue. Strong net order value growth supports FY29 targets, while earnings estimates were raised for FY28-29 despite a cut in FY27 EBITDA estimates.

Elara Capital Holds Bullish Stance

Elara Capital maintained its BUY rating and Rs 400 target price on Eternal, implying a 41 per cent upside, highlighting strong growth in food delivery and quick commerce.

Food delivery NOV rose 20.1 per cent year-on-year, while Blinkit NOV surged 86.2 per cent, along with improving margins. The brokerage expects growth moderation ahead but sees strong returns from mature stores and advertising revenue potential.

Citi Suggests Eternal as Top India Internet Pick

Citi maintained its BUY rating on Eternal and raised its target price to Rs 385 from Rs 360, citing record quick commerce user additions and improving retention. This reflects an upside of over 35 per cent.

Blinkit NOV growth exceeded estimates, while food delivery margins remained healthy. Management commentary indicated that growth and profitability remain balanced, with Eternal retaining Citi’s position as its top India internet pick.

Eternal Stock Performance

However, the upside suggested by brokerages, of up to 41 per cent, reflects the continued momentum the stock has witnessed across different time frames. The stock gained 1.06 per cent over one week and 11.80 per cent over one month. It is up 2.01 per cent year-to-date, down 4.15 per cent over one year, while delivering returns of 260.52 per cent and 129.76 per cent over three and five years, respectively.

(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)