 "Eternal shares down 25% from record high; what's making the Street nervous?")
Eternal share price today
Share price of Eternal (formerly known as Zomato) hit an over five-month low of ₹277.10, falling 2 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes.
The stock price of the parent company of food delivery platform Zomato and quick commerce Blinkit, was trading at its lowest level since July 21, 2025. It has corrected 25 per cent from its record high of ₹368.40 touched on October 16, 2025.
At 10:22 AM; Eternal was trading 1.4 per cent lower at ₹279, as compared to 0.08 per cent rise in the BSE Sensex. A combined 6.97 million equity shares changed hands on the NSE and BSE.
Why has Eternal stock underperformed the market?
Zomato operates a B2C technology platform that provides customers with a seamless, on demand solution to search and discover local restaurants, order food, and have it delivered reliably and quickly. Blinkit is a quick commerce B2C marketplace providing on-demand delivery of products across multiple categories.
According to media reports, Vipin Kapooria, the chief financial officer of Blinkit, has resigned from the company. The resignation of the company’s top executive comes a little over a year after he joined the quick commerce platform in September last year, the Business Standard reported, quoting sources familiar with the matter.
The quick commerce landscape has seen an uptick in competitive aggression in Q3, with recent entrants (Minutes/Now/Jiomart) aggressively expanding store coverage and aggressive promotional strategies to drive growth. Analysts believe these actions are not likely to sustain for a long period of time, on account of unsustainable losses.
Meanwhile, Trilegal advised the StepStone group and the Investor Selling Shareholders, Goodwater Capital entities and Duke University on the proposed initial public offering by Zepto Limited (Zepto) comprising a fresh issue and an offer for sale of equity shares. Zepto filed its pre-filed draft red herring prospectus through the confidential filing route with the Securities and Exchange Board of India (SEBI). CATCH STOCK MARKET LIVE UPDATES TODAY
JM Financial Institutional Equities view on Eternal
Analysts at JM Financial Institutional Securities expect Blinkit’s net order value (NOV) growth in December 2025 quarter (Q3FY26) to moderate to 13 per cent quarter-on-quarter (QoQ) vs. 25 per cent/27 per cent in Q1/Q2, primarily due to up-fronting of some festive spending in the preceding quarter (as key festivals came in earlier this year).
In addition, high competitive intensity from multiple players – through the lowering down of minimum order value (MOV) thresholds and zero/negligible delivery/service fees - could weigh on growth, in brokerage firm's opinion. That said, analysts view this moderation as transitory in nature, as on a year-on-year (YoY) basis, they expect Blinkit to still deliver an healthy 120 per cent plus NOV growth Q3, well above management guidance of 100 per cent plus. In FY27, analysts build 90 per cent YoY growth in NOV.
Eternal’s balance sheet remains robust, with net cash of over ₹18,000 crore, providing ample flexibility to withstand periods of competitive intensity and invest behind growth levers if required. The company continues to generate free cash flows at a consolidated level (excluding one-off working capital impact from the inventory transition), without sacrificing growth, the brokerage firm said in the company update.
Even after factoring in near-term moderation in Blinkit’s growth, Eternal continues to trade at a meaningful discount to high-quality retail and consumer internet peers on a PEG basis. As profitability scales up across Blinkit and food delivery, analysts believe the stock remains well positioned for medium-term re-rating.
However, analysts revised down target multiple to 75x (earlier 80x) on account of earnings cut. They roll-forward to December 2026 for a revised target price ₹400. “Eternal continues to be one of our preferred picks in the listed Internet space as we believe it is well positioned to benefit from robust industry tailwinds for the hyperlocal delivery businesses,” the brokerage firm said while maintaining a ‘BUY’ rating on the stock. ========================== Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.