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Despite recent market volatility, major brokerages like Axis Securities and HDFC Securities see a massive upside for Eternal (the parent brand of Zomato and Blinkit), setting price targets up to ₹360.
The Indian stock market witnessed significant fluctuations on Thursday, but one stock that stood out in discussions was Eternal, the parent company of the food delivery giant Zomato and quick-commerce leader Blinkit. While the shares faced some selling pressure, dropping over 4% to hit a low of ₹223.70 during the session, top analysts believe this is just a minor bump in a long-term rally.
Why Brokerages are Betting Big on Eternal?
Two major domestic brokerages have upgraded their ratings and raised target prices, signaling a potential gain of more than 50% from the current levels.
HDFC Securities (Target Price: ₹340): HDFC has upgraded Eternal to a 'Buy' rating. Analysts highlight that Blinkit is successfully leveraging its massive supply chain, outperforming competitors who are still struggling with unit economics. Furthermore, Zomato’s focus on Gold Membership and the expansion of the 'Going Out' business are expected to be major growth drivers.
Axis Securities (Target Price: ₹360): Offering an even more optimistic outlook, Axis Securities sees a 55% upside, setting a bullish target of ₹360 per share.
Financial Growth: Dec Q3 Results
The company's latest financial performance backs this optimism. In the December quarter of FY 2025-26, Eternal reported:
Net Profit: Surged by 72.88% to ₹102 crore, compared to ₹59 crore in the same period last year.
Revenue from Operations: Shot up significantly to ₹16,315 crore, showcasing a massive jump from the previous year’s ₹5,405 crore.
Employee Retention via ESOPs
To maintain its growth trajectory, Eternal recently approved a new grant of 74.18 lakh Employee Stock Options (ESOPs). This move is part of the company's long-standing tradition of using equity incentives to retain top talent and reward employees as the company scales new heights.
Investor Outlook
While pharmaceutical and other sectors faced tension due to global trade policies, the quick-commerce and food-delivery segments led by Zomato/Eternal remain in a strong position. For long-term investors, the combination of Blinkit’s market share growth and Zomato’s stabilizing unit economics makes it a stock to watch closely.
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