Adobe Stock
Eternal , formerly known as Zomato, is back in the spotlight. But not for breaking new ground in quick commerce or food delivery.
On Tuesday (May 20, 2025), its stock dropped over 4 per cent to trade at Rs 228 on the BSE. It had faced a similar decline on Monday as well, though of a lesser magnitude (3.1 per cent).
What's fuelling the fear?
It all boils down to Eternal's plan to become an 'Indian owned and controlled' company.
That sounds patriotic, but for foreign investors, it's a red flag. Jefferies estimates that if this ownership cap is enforced, global passive funds could pull out nearly $1.3 billion from the stock. What's worse, Eternal could be kicked out of MSCI indices, further denting its global visibility and liquidity.
Why does MSCI matter?
Getting booted from MSCI (Morgan Stanley Capital International) indices is no small thing. Many global passive funds, especially ETFs (exchange-traded funds), track these indices. When a stock is removed, these funds must sell, no matter what.
What does Eternal do?
Eternal may have changed its name, but at its core, it's still Zomato. It runs:
-
Zomato
: India's leading food delivery platform
-
Blinkit
: A fast-growing quick commerce player
- Hyperpure : A B2B supply platform for restaurants
Here's a look at the company's fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 2.2 lakh cr |
| Net profit (TTM) | Rs 527 cr |
| ROE | 1.9 per cent |
| ROCE | 1.8 per cent |
| P/E ratio | 420.9 |
| P/B ratio | 7.3 |
| Dividend yield | 0 per cent |
| Book value | Rs 31.5 |
| EPS | Rs 0.6 |
How is Eternal rated as per Value Research Online?
| Category | Rating |
|---|---|
| Overall | 2/10 |
| Quality | 4/10 |
| Growth | 5/10 |
| Valuation | 2/10 |
| Momentum | 6/10 |
What should investors do?
Eternal wants to take control back. But in doing so, it might be pushing out the very investors who helped it get this far. The company's fundamentals may be stable, but the stock's stability is now in question.
If you're a long-term believer in the food-tech and quick-commerce story, this may not be the time to panic. But if you're riding Eternal for its MSCI inclusion or FII love, it's time to reassess. The foreign ownership cap, if implemented, can change the rules of the game.
Why smart investors trust expert research
Want sharper, stock-focused guidance? Value Research Stock Advisor gives you expert-researched stock recommendations, long-term strategies and the discipline to help you build real wealth. Join thousands of successful Indian investors who trust us to guide their equity journey.
Check it out here: Value Research Stock Advisor
Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
