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What is the story about?
Eternal Ltd., the parent company of food delivery aggregator Zomato and quick commerce operator Blinkit, has received its highest share price target from brokerage firm CLSA on Thursday, January 22, after its third quarter results and the transition of its founder and CEO Deepinder Goyal away from day-to-day operations.
CLSA has retained its "high-conviction outperform" rating on the stock with a revised price target of ₹506 from ₹483 earlier. The revised price target implies a potential upside of 80% from current levels.
The brokerage said that Blinkit's contribution per order of ₹30 was ahead of its ₹28 estimates, while Monthly Transacting Users were also higher than estimates due to a consistent pricing strategy and expanding assortment.
As a result, CLSA has raised Eternal's earnings estimates for financial year 2026-2028 by 5% to 15% respectively.
30 out of the 33 analysts covering Eternal have a "buy" rating on the stock, while the other three have a "sell" rating.
Here's a look at what other analysts had to say on the road ahead for Eternal:
The brokerage has maintained its "buy" rating on the stock with a price target of ₹480, which is the second-highest price target on the street for Eternal.
Jefferies said that Blinkit delivered positive EBITDA at a time when competitive intensity appears to be near its peak, and that reflects the underlying strength of the business.
Deepinder Goyal passing on the baton to Albinder Dhindsa is another surprise from Eternal.
The brokerage has a "buy" rating with a price target of ₹350, stating that there were multiple positive surprises this quarter.
Quick Commerce's slowdown in the third quarter and seasonality, but that leaves upside for its financial year 2027 Net Order Value (NOV) consensus estimates.
HSBC continues to expect 15% to 20% annual returns from Eternal.
Although Nomura has maintained its "buy" rating with a price target of ₹380, it said that the organization transition needs to be monitored closely and lower profitability for the Quick Commerce business for a prolonged period of time could be a key risk.
Shares of Eternal are trading 4.3% higher on Thursday at ₹295.6. The stock had ended over 4% higher on Wednesday as well ahead of the results announcement to close at ₹282.8. The stock has corrected significantly from its recent peak of ₹364.
CLSA has retained its "high-conviction outperform" rating on the stock with a revised price target of ₹506 from ₹483 earlier. The revised price target implies a potential upside of 80% from current levels.
The brokerage said that Blinkit's contribution per order of ₹30 was ahead of its ₹28 estimates, while Monthly Transacting Users were also higher than estimates due to a consistent pricing strategy and expanding assortment.
As a result, CLSA has raised Eternal's earnings estimates for financial year 2026-2028 by 5% to 15% respectively.
30 out of the 33 analysts covering Eternal have a "buy" rating on the stock, while the other three have a "sell" rating.
Here's a look at what other analysts had to say on the road ahead for Eternal:
Jefferies
The brokerage has maintained its "buy" rating on the stock with a price target of ₹480, which is the second-highest price target on the street for Eternal.
Jefferies said that Blinkit delivered positive EBITDA at a time when competitive intensity appears to be near its peak, and that reflects the underlying strength of the business.
Deepinder Goyal passing on the baton to Albinder Dhindsa is another surprise from Eternal.
HSBC
The brokerage has a "buy" rating with a price target of ₹350, stating that there were multiple positive surprises this quarter.
Quick Commerce's slowdown in the third quarter and seasonality, but that leaves upside for its financial year 2027 Net Order Value (NOV) consensus estimates.
HSBC continues to expect 15% to 20% annual returns from Eternal.
Nomura
Although Nomura has maintained its "buy" rating with a price target of ₹380, it said that the organization transition needs to be monitored closely and lower profitability for the Quick Commerce business for a prolonged period of time could be a key risk.
Shares of Eternal are trading 4.3% higher on Thursday at ₹295.6. The stock had ended over 4% higher on Wednesday as well ahead of the results announcement to close at ₹282.8. The stock has corrected significantly from its recent peak of ₹364.
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