Eternal shares will bottom out at these levels, Morgan Stanley says, projects 38% upside

Brokerage firm Morgan Stanley has maintained its "overweight" rating on Nifty 50 stock and food delivery and quick commerce aggregator Eternal Ltd. in its latest note on Tuesday, November 18.

Morgan Stanley remains "overweight" on Eternal and with a price target of ₹427, which implies a potential upside of 38% from Monday's closing levels. Shares of Eternal have declined 9% in the last one month.

The brokerage said that Eternal's shares currently have the best risk-reward and that it would use the current weakness to accumulate the stock.

Eternal's strategy of doubling down on customer market share, is something that Morgan Stanley likes, as it believes that the expansion of the company's wallet share can follow later.

However, in a stress case scenario, Morgan Stanley believes that higher aggression from Eternal could push the company back into losses from the current profitability scenario, but that will not be a game changer for the company's outlook and current fundamentals.

At the current price, Eternal is implying a two-year forward Enterprise Value to Gross Order Value of 1.1 times for Blinkit, which is the same as March this year.

In the worst case scenario, the stock is likely to bottom between ₹280 to ₹285 per share, according to the Morgan Stanley note.

33 analysts have coverage on Eternal currently, of which, 29 of them have a "buy" rating and the rest have a "sell" rating.

Shares of Eternal ended 1.9% higher on Monday, at ₹309.6. The stock is up 47% so far in 2025.