INSUBCONTINENT EXCLUSIVE:
Eternal Ltd shares jumped to a record high of Rs 311.6 on Tuesday, pressing the Zomato and Blinkit parents market capitalisation past Rs 3
lakh croresurpassing numerous prominent Nifty 50 constituents, consisting of Wipro, Tata Motors, JSW Steel, Nestle India, and Asian
Paints.The stock leapt as much as 15% to hit an all-time high of Rs 311.6 on the BSE, before paring gains to trade 8.8% greater at Rs 295.10
The sharp rally came as investors cheered a blowout June-quarter efficiency by Blinkit, Eternals quick-commerce vertical, together with
management commentary that analysts stated marked a clear departure from earlier caution.Investor enthusiasm was driven by Blinkits meteoric
growth, which now surpasses Zomato in regards to net order worth (NOV)
The positive Q1 results led to a raft of upward target modifications
Jefferies led the charge, updating the stock to Buy and raising its target cost to Rs 400, the most bullish get in touch with the Street,
while admitting it had previously overestimated the competitive threat.While the June quarter itself was combined, Jefferies noted that
management commentary was considerably favorable, especially on fast commerce, a departure from earlier quarters.Emkay Global said Blinkit
registered strong 1Q results, with Blinkit reporting 140% YoY GOV growth and 50bps QoQ enhancement in adjusted EBITDA margin
The brokerage raised its target price by 14% to Rs 330 from Rs 290, retaining a Buy rating.Live EventsJM Financial also applauded the
Eternal as soon as again surprised us positively on Blinkit
This time though, the surprise was more on management commentary than the reported numbers, as it was rather a contrast to the careful tone
post 4QFY25 results, it wrote.Analysts were particularly struck by Eternals strategic pivot
Over the next 2-3 quarters, Eternal is set to slowly make a transition in the quick commerce (QCom) company, from its present market model
to an inventory ownership model; this will drive ~ 100bps margin growth, albeit needing net working capital of ~ 18 days, according to
Emkay.Profit course in sight, however not everyone is convincedNomura forecasted a medium-term course to success, saying it anticipates
Blinkit to break-even at adjusted EBITDA level in 4Q FY26F, while including that Blinkit management anticipates lower absolute development
in adj EBITDA in coming quarters as it continues to rationalize marketing spends.However, some analysts prompted caution
Macquarie stayed with its bearish view, maintaining an Underperform ranking with a target cost of Rs 150
Regardless of yet to be shown steady-state economics and rising competition, the present share cost indicates $15bn value for Blinkit, the
Stay safeguarded on both Quick Commerce economics and whats priced in Eternal shares.Market cap milestoneWith Tuesdays rally, Eternals
market capitalisation temporarily touched Rs 3 lakh crore, putting it ahead of several marquee names on the Nifty 50
These consist of Wipro, Tata Motors, JSW Steel, Nestle India, Coal India, Bajaj Auto, Asian Paints, Eicher Motors, Tech Mahindra and
Cipla.Shares of Eternal have increased 33% over the past 12 months and are up 7% so far in 2025.|Everlasting share price target goes up to
Rs 400! What brokerages stated after Q1 outcomes(Disclaimer: Recommendations, recommendations, views and viewpoints given by the specialists
These do not represent the views of the Economic Times)
