Eternal Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Eternal Limited is navigating a pivotal transition under new leadership, with a strategic focus on sustainable profitability and operational efficiency. Management's shift towards automation and a skilled workforce aims to enhance margins while addressing competitive pressures in the quick commerce sector. The company's recent performance indicates robust growth, particularly in quick commerce, where a 1P model has driven significant revenue increases. However, challenges such as regulatory pressures and high capital intensity in quick commerce could impact financial stability. Vista's forecast reflects moderated revenue growth expectations, stable margins, and a long-term valuation that anticipates continued growth despite these headwinds. The macroeconomic environment remains supportive, with improving indicators in the Indian economy, although foreign institutional flows present a potential risk. Over the next 12-24 months, key opportunities lie in expanding gourmet offerings and optimizing operational efficiencies, while watchpoints include execution risks related to management changes and competitive dynamics in the marketplace
Why We Like This Stock
- Transition to a 1P model in quick commerce has significantly boosted revenue and operational efficiency
- Management's focus on automation and a skilled workforce is expected to enhance margins and long-term profitability
- Strong growth in the food delivery segment and optimistic long-term guidance support a positive outlook
Things To Watch Out For
- Regulatory pressures, including significant GST demands, could adversely impact financial performance
- High capital intensity in quick commerce poses risks if expected returns do not materialize
- Intense competition and aggressive discounting strategies from rivals may pressure margins and market share
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 12,114 | 20,243 | 54,364 | 68,522 | 96,211 |
| Profit Before Tax (Cr.) | 163 | 557 | 615 | 1,330 | 2,332 |
| PBT Margin | 1.3% | 2.8% | 1.1% | 1.9% | 2.4% |
| Net Profit (Cr.) | 162 | 372 | 296 | 998 | 1,749 |
| Earnings Per Share | 0.2 | 0.4 | 0.3 | 1.1 | 1.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Goldman Sachs | ▲ Buy | 385 | 29-Sep-2026 |
| BofA | ▲ Buy | 375 | 23-Sep-2026 |
| Bernstein | ▲ Outperform | 350 | 16-Sep-2026 |
| Jeffries | ▲ Overweight | 415 | 01-Sep-2026 |
| CLSA | ▲ Outperform | 506 | 27-Aug-2026 |
| Macguire | ▼ Underperform | 225 | 20-Aug-2026 |
| Kotak Securities | ▲ Buy | 395 | 19-Aug-2026 |
| HDFC Securities | ▲ Buy | 390 | 28-Jul-2026 |
| Citigroup | ▲ Buy | 385 | 23-Jul-2026 |
| Elara Capital | ▲ Buy | 400 | 23-Jul-2026 |
| Emkay Global | ▲ Buy | 400 | 23-Jul-2026 |
| HSBC | ▲ Buy | 340 | 23-Jul-2026 |
| ICICI Securities | ▲ Buy | 360 | 23-Jul-2026 |
| JPMorgan | ▲ Overweight | 390 | 23-Jul-2026 |
| Morgan Stanley | ▲ Overweight | 373 | 23-Jul-2026 |
| Motilal Oswal | ▲ Buy | 400 | 23-Jul-2026 |
| Nomura | ▲ Buy | 350 | 23-Jul-2026 |
| UBS | ▲ Buy | 305 | 17-Jun-2026 |
| Geojit Financials | ▲ Buy | 283 | 14-May-2026 |
| Anand Rathi | ▲ Buy | 400 | 29-Apr-2026 |
| Moneycontrol | ▲ Overweight | nan | 29-Apr-2026 |
| Nuvama | ▲ Buy | 380 | 29-Apr-2026 |
| Investec | ▲ Buy | 375 | 28-Apr-2026 |
Company Overview
Show Company Profile
Eternal Limited, together with its subsidiaries, provides e-commerce platform services to restaurant partners, quick commerce merchants, delivery partners, theatres, sports facilities, event organizers, and users in India and internationally. The company operates through India Food Ordering and Delivery, Hyperpure Supplies (B2B Business), Quick Commerce, and Going Out segments. It offers a B2C technology platform under the Zomato brand that facilitates listing and online ordering of food items by connecting end users, restaurant partners, and independent delivery partners, as well as food rescue, food on train, and food expense management solutions; and B2B supplies solutions under the Hyperpure brand that supplies value added food ingredients and other products to restaurants, as well as 4PL warehousing and supply chain services. The company also provides quick commerce services under the Blinkit brand that provides on-demand delivery of products across various categories, such as daily essentials, electronics, beauty and personal care, fresh, staples, books, fashion, toys and sports, general merchandise, festive needs, stationery, and emergency supplies; and entertainment services, including dining-out, movies, events, shopping, and live event ticketing through its District app. In addition, it offers payment aggregator and gateway, logistics, technology solutions, quick food service, trading, advertisement, and subscriptions services; and operates internet portals, as well as charitable and social welfare activities. The company was formerly known as Zomato Limited and changed its name to Eternal Limited in March 2025. Eternal Limited was founded in 2008 and is headquartered in Gurugram, India.