Eternal Ltd, the parent company of online food delivery giant Zomato, hit its 52-week high of Rs 340 per share on September 19, after the global brokerage firm Goldman Sachs raised the target price of the Eternal Stock and maintained a ‘buy’ rating on the stock. The stock closed at Rs 337.65 per share, down by 0.06 per cent on Friday’s session.
The Eternal stock is experiencing growth momentum. The company appears to be supported by Blinkit’s expansion, which is why the brokerage has once again maintained a bullish stance on it.
How should you trade Eternal shares?
Brokerage firm Goldman Sachs has maintained a buy rating on Eternal. They have raised the target price to Rs 360 per share and maintained a ‘buy’ rating, implying a potential upside of 10 per cent. However, as of September 19, the stock closed at Rs 337.65 per share on Friday’s session.
According to the report, the company’s quick-commerce business, Blinkit, is showing strong growth.
The brokerage said that Blinkit’s net order value (NOV) estimate for FY2027 is now 80 per cent higher than it was 12 months ago and 260 per cent higher than it was 24 months ago.
The brokerage believes that the number of Blinkit stores could double in the next two to three years. This could significantly increase the company’s market share. The report states that the full potential of this growth is not yet reflected in Zomato’s current share price (CMP). This implies that the stock still has room for further upside, as per the brokerage.
According to Goldman Sachs, competition has remained stable in recent months, and Blinkit is moving toward its first-party (1P) model, which will improve margins. The brokerage expects margins in this segment to increase by 2.40 per cent (240 bps) over the next two quarters.
Eternal stock performance snapshot:
Zomato shares have given good gains to investors over the past six months. The company’s stock has risen by approximately 1.50 per cent intraday. This stock has seen returns of over 5 per cent in the past month.
At the same time, this stock has given a return of more than 52 per cent to the investors in the past six months.
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