Eternal Ltd, the operator behind popular platforms like Zomato, Blinkit, Hyperpure, and District, has become the subject of intense analyst scrutiny following its recent September quarter (Q2) results. At least 17 brokerage firms have weighed in, presenting a wide range of price targets and recommendations, with the majority leaning towards 'Buy' or 'Overweight' ratings.
Brokerage Firms Offer Divergent Targets for Eternal Shares
The consensus 12-month target for Eternal shares currently stands at ₹381, suggesting a potential upside of approximately 22% from its recent closing price of ₹312.35. However, individual firm projections show significant variance.
CLSA has set the most optimistic target on the Street, forecasting a price of ₹513 per share. In contrast, Macquarie holds the lowest target at ₹225, indicating a potential downside for investors. Ambit Capital also issued a 'Sell' rating with a target of ₹245, suggesting up to a 28% potential downside.
Key Brokerage Insights and Q2 Performance
Several other prominent brokerages have also provided their outlooks:
- JPMorgan and Morgan Stanley both maintained 'overweight' ratings, with targets of ₹420 and ₹417, respectively.
- Jefferies recommended a 'Buy' with a target of ₹430.
- Goldman Sachs valued the stock at ₹400, while UBS set its target at ₹390.
- Citi and Bernstein offered targets of ₹385 and ₹350, respectively.
Nirmal Bang Institutional Equities highlighted strong Q2 performance across both segments. The food delivery (FD) business achieved a steady 5.5% margin, while Blinkit recorded its third consecutive quarter of positive adjusted EBITDA and saw re-accelerated net order value (NOV). The brokerage noted that competition in quick commerce (QC) is becoming more predictable, and suggested a 'Buy' rating with a target of ₹385.
A key driver for this positive sentiment, according to Nirmal Bang, is the upward revision of Blinkit's steady-state model. Management's guidance towards the top end of the 6% adjusted EBITDA band and plans to accelerate store additions from Q3 without diluting margins are seen as significant incremental drivers. This quarter, they said, reinforced a growth-led strategy for both Blinkit and food delivery, improving visibility on quick-commerce expansion economics.
MOFSL also weighed in, noting the stability of Eternal's FD business and Blinkit's long-term potential in the structural shift of retail, grocery, and e-commerce. While competitive intensity remains elevated, MOFSL observed that the business model appears established. They adjusted their FY27 EPS estimate due to a substantially higher tax rate in Q2, as tax shields from carried forward losses have been exhausted. MOFSL set a target of ₹420.
Nuvama Institutional Equities also raised its target on Eternal shares to ₹420 from ₹360, reflecting an increased confidence in the company's trajectory.
The wide range of targets underscores a dynamic market perspective on Eternal's future, balancing strong operational performance in Q2 with varying interpretations of its growth trajectory and financial implications.