According to Nuvama Alternative & Quantitative Research, the weightage increase for Eternal in the MSCI Standard Index could result in potential inflows worth $674 million or 205 million shares, which is 6 times higher than its daily average volume.
The rebalancing exercise is set to take place on August 31, according to the MSCI release.
Apart from Eternal, Adani Enterprises, Adani Ports, Swiggy, Adani Power, JSW Energy, and GMR Airports will also see an increase in their weightage.
Shares of Eternal have recovered over ₹100 from their recent 52-week lows, which stood at nearly ₹212.
Eternal reported its June quarter results last month, where its Food Delivery net Order Value (NOV) grew by 20%, which was at the higher end of the 18% to 20% estimate. The Quick Commerce business, also known as Blinkit, saw its NOV grow by 86%, higher than expectations of 20% to 25% growth.
Brokerage firm JPMorgan maintained its “overweight” rating on the stock with a price target of ₹390.
CLSA also retained its “high-conviction outperform” rating on Eternal with a price target of ₹506. The brokerage said that the June quarter reinforced the brokerage’s view on strong execution with both quick commerce and food delivery seeing growth acceleration.
Jefferies and HSBC also maintained their “buy” rating on the stock with a price target of ₹415 and ₹340 respectively.
29 out of the 33 analysts tracking Eternal have a “buy” recommendation on the stock.
Shares of Eternal are trading 0.5% higher on Thursday at ₹315.7. The stock is up 11% so far this year.
