CLSA has assigned a target price of ₹483 to Eternal, expecting its quick-commerce business to break even at the adjusted EBITDA level by the March 2026 quarter. According to the latest brokerage report, improving contribution per order and easing competitive intensity are seen as reinforcing Eternal's leadership in the high-growth quick-commerce segment. This positive outlook comes as Eternal shares surged 3% to ₹292.95 on BSE, building on recent analyst endorsements that have helped the stock recover from its recent correction.
Eternal shares surged 3% to ₹292.95 on BSE following strong endorsements from multiple brokerages after the stock experienced a 17% correction over the past three months. According to reports from The Economic Times, Goldman Sachs dismissed the extent of bearishness priced into the stock, maintaining its buy rating with a revised 12-month target price of ₹375, implying 28% upside potential from current levels. The rally came as Goldman analysts stated they disagree with the level of pessimism surrounding the quick-commerce leader despite recent market concerns. Amid this positive sentiment, the stock has shown strong performance with historical returns of +15.28% over one year and an impressive +128.77% over five years.
Eternal Limited recorded a major block trade worth ₹116.8 crore on the National Stock Exchange (NSE), involving approximately 4,156,712 shares at ₹281 per share. The transaction represents significant institutional activity and demonstrates strong liquidity in the stock. Such large-volume block trades typically indicate strategic investment decisions by institutional players, including mutual funds, insurance companies, and foreign institutional investors. The execution at ₹281 per share reflects prevailing market conditions and showcases robust institutional participation in the company's shares, highlighting its position in the large-cap segment of the Indian equity market.
The recent decline in Eternal shares has been driven by investor concerns over a near-term slowdown in quick-commerce growth, rising competition, and potential impact on Blinkit's margins. As reported by The Economic Times, the industry currently has at least 7 players operating including Blinkit, Swiggy, Zepto, Jiomart, BigBasket, Amazon, and Flipkart. However, Goldman Sachs expects Blinkit to capture more than 100% share of the quick-commerce industry profit pool (EBITDA) starting FY27 and for at least the following 2-3 years, despite the competitive landscape. CLSA's expectation of breakeven by March 2026 aligns with this optimistic outlook, citing improving contribution per order and easing competitive intensity as key drivers.
Nuvama Institutional Equities expects Eternal to be among the leaders in revenue growth in Q3 within its internet coverage universe. According to the brokerage report, Nuvama has pegged revenue at ₹15,492 crore for the October-December quarter, implying growth of 187% year-on-year (YoY) and 14% sequentially. However, adjusted PAT is expected to decline 84% YoY to ₹9.3 crore, with a sequential drop of 86% also anticipated. Goldman estimates that Blinkit currently holds around 40-45% market share of India's quick-commerce industry by net order value and expects this to remain broadly stable through FY30.
