Daijiworld Media Network - Mumbai
Mumbai, Sep 22: Shares of Eternal Ltd hit a record high on Thursday, extending a rally that has seen the stock climb 70% from its 52-week low and 325% above its issue price. With a market capitalization of Rs 3.26 lakh crore, Eternal has overtaken Titan and Tata Motors, emerging among India’s most valuable companies.
Brokerages remain largely bullish on the stock, with 29 out of 33 analysts maintaining a ‘buy’ rating. Price targets from major brokerages indicate potential upside, with Motilal Oswal estimating Rs 420, CLSA at 24% gains, Jefferies 19%, and JP Morgan at Rs 390. Goldman Sachs projects a more conservative Rs 360.
The stock’s valuation is high, trading at a trailing twelve-month P/E of 993x. Forward estimates for FY26E and FY27E show P/E ratios of 409x and 123x, respectively. Analysts note that the market has priced in aggressive growth expectations.
Eternal’s quick commerce business, led by Blinkit, has been a key driver, with gross order value growth exceeding 120% year-on-year over the past five quarters and accelerating to 140% in the first quarter of this year. Monthly transacting users have doubled, though average gross order value per store has plateaued.
However, the food delivery segment has shown slowing growth, declining from 27% year-on-year in Q1 of the previous fiscal year to 16% in Q1 of the current fiscal year. Competition in quick commerce has intensified, with rivals like Amazon Now and Dmart Ready offering higher discounts compared to Blinkit, Zepto, and Instamart.
Eternal’s strong performance highlights its rapid growth and market presence, though valuation and competition remain key factors to monitor.