Eternal shares can jump 95% from current levels, says CLSA’s ‘high-conviction’ after Q4 results

CLSA’s target came on Wednesday, April 29, a day after Eternal reported its results for the March quarter, that were better than expectations for most parameters.

The brokerage wrote in its note that their confidence on Blinkit’s business model is now strengthened, due to robust growth and profitability reported this quarter, despite the heightened competitive intensity.

In its letter to shareholders, Eternal stated that it is hopeful of reaching $1 billion in adjusted EBITDA by financial year 2029. The company also expects the current quarter to be meaningfully stronger on a sequential basis, adding that there is no meaningful impact on food delivery due to the LPG crisis.

While CLSA has retained its “high-conviction”, Jefferies has cut its price target to ₹400 from ₹480 earlier, while maintained its “buy” rating.

Jefferies echoed CLSA’s view that despite heightened competition, Eternal’s Quick Commerce profitability improved further, which is commendable.

It also cited the management’s EBITDA guidance and their views of using AI as an enabler and not a disruptor.

Goldman Sachs has maintained its “buy” rating on Eternal with a price target of ₹340, stating that quick commerce margins can expand despite competition and food delivery growth acceleration will turn out to be near-term drivers of the stock price.

The brokerage sees Blinkit’s Net Order Value to accelerate by 15% sequentially and 80% year-on-year in the June quarter, driven by better Average Order Value, higher number of days, and a positive impact from the summer quarter, thereby anticipating further margin improvement.

For the Food delivery business, Goldman sees a 19% Net Order Value growth in the first quarter of financial year 2027, with a 20 basis points sequential EBITDA margin expansion aided by a recent increase in platform fees.

HSBC has maintained its “buy” rating on Eternal with a price target of ₹300, stating that it sees long-term value in the stock even as near-term volatility may persist.

On the flip side, Macquarie continues to have an “underperform” rating on Eternal with a price target of ₹200.

34 analysts have coverage on Eternal, of which 31 have a “buy” rating, and three have a “sell” recommendation.

Shares of Eternal saw a sharp recovery from the lows of the day after the results announcement on Tuesday, ending 1.1% higher at ₹258.2. The stock is up another 4% on Wednesday.