Eternal up 2% on heavy volumes; Morgan Stanley maintains overweight rating

Eternal share price: Food aggregator Eternal, formerly known as Zomato, shares rose as much as 1.92 per cent to hit an intraday high of ₹245.95 per share on Tuesday, June 3, 2025. 

 

However, at 11:30 AM, Eternal shares were trading 0.75 per cent lower at ₹239.50 per share. In comparison, BSE Sensex was trading 0.46 per cent lower at 80,998.58 levels.

Triggers behind the uptick in Eternal share price

Eternal’s share price surged in trade today, driven by strong volumes and a bullish outlook from Morgan Stanley.

 

By 11:30 AM, trading activity was robust, with 10.95 million shares changing hands on the BSE worth ₹266.99 crore. On the NSE, volume was even higher, with 40.59 million shares traded worth ₹985.60 crore.

 

 

Another major catalyst for the rally was Morgan Stanley reiterating its ‘Overweight’ rating on the stock, maintaining a target price of ₹320 per share. 

 

The brokerage also reaffirmed Eternal as its top pick, citing the company’s market leadership in both food delivery and quick commerce segments, as well as a favourable risk-reward profile.  Also Read: Eternal vs Swiggy: Tech charts favour this stock, hint up to 21% upside

Eternal Q4 results

Eternal’s consolidated profit dropped 77.7 per cent year-on-year (Y-o-Y) to ₹39  crore in the March quarter of financial year 2025 (Q4FY25), from ₹175 crore in the March quarter of financial year 2024 (Q4FY24).

 

The revenue from operations, also known as topline, climbed 63.8 per cent Y-o-Y to ₹5,833 crore in Q4FY25, from ₹3,562 crore a year ago (Q4FY24).

 

At the operating level, earnings before interest tax depreciation and amortisation (Ebitda) dropped 16.3 per cent annually to ₹72 crore in Q4FY25, from ₹86 crore in the same quarter  a year ago.

 

Subsequently, Ebitda margin, also known as operating profit margin (OPM), squeezed 118 basis points (bps) to 1.23 per cent in Q4FY25, from 2.41 per cent in Q4FY24.  

About Eternal 

Eternal (formerly known as Zomato) is a leading global food-tech platform that connects users with a wide range of restaurant services, including restaurant discovery, online food ordering, and table reservations. 

 

Founded in 2008 by Deepinder Goyal and Pankaj Chaddah under the name Foodiebay, the company was later rebranded as Zomato (now Eternal). 

 

It began by offering restaurant listings and menu information, gradually evolving into a comprehensive platform catering to various aspects of the food and dining industry.

 

Over the years, Zomato has expanded its services to include food delivery, grocery delivery, and other related verticals. 

 

Today, the company partners with over 300,000 restaurants across more than 800 cities. According to its official website, Zomato has successfully delivered over 3 billion orders, to date.