Eternal shares hit record high as Goldman Sachs raises target price

Shares of Eternal Ltd., the parent company of food delivery aggregator Zomato, rose around 3% on Thursday, September 18, marking the stock's fourth straight session of gains.

Global brokerage Goldman Sachs reiterated its 'Buy' rating on Eternal and raised the price target to ₹360 from ₹340 earlier, implying a potential upside of about 10% from Wednesday's close. Its bull-case scenario suggests as much as 44% upside.

The brokerage wrote in its note said Blinkit's growth momentum remains robust, with its FY27 net order value (NOV) estimates now tracking 80% higher than projections made 12 months ago and 260% above expectations from 24 months ago.

With store count expected to double over the next two to three years, Goldman Sachs believes Blinkit could capture a larger market share, a dynamic not yet fully reflected in Zomato's current valuation.

The brokerage further said that with a relatively stable competitive environment, slower sequential store growth, and Blinkit's transition to a first-party (1P) model, margins in this segment may expand by 240 basis points of NOV over the next two quarters.

It also expects Blinkit to achieve EBITDA break-even by December 2025, which it flagged as a key catalyst for the stock.

Shares of Eternal settled 2.92% higher on Thursday at ₹337.85. The stock has risen 22% so far this year.