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Eternal Limited, formerly Zomato, just got a taste of the cold shoulder. Its share price plunged nearly 4.6 per cent today (May 26, 2025), after two global heavyweights - FTSE Russell and MSCI - cut its index weight.
What has triggered a fall in Eternal's share price
-
Eternal lowered its foreign ownership limit from 100 per cent to 49.5 per cent.
-
The result? Both FTSE and MSCI have cut the stock's weight in their global indices.
- This means index funds must reduce their holding, potentially triggering $840 million in passive outflows starting May 27.
Subsequently, the share price dropped to nearly Rs 227 today. While it's still up nearly 25 per cent over the past year and over 280 per cent in three years, near-term pressure is real.
About the company
Eternal is the parent company of the food delivery app Zomato, quick-commerce play Blinkit, B2B supply chain arm Hyperpure and ticketing business Zomato Live (District).
Here's how its fundamentals look.
| Metric | Value |
|---|---|
| Market cap | Rs 2.2 lakh crore |
| ROE | 1.9 per cent |
| ROCE | 1.8 per cent |
| P/E ratio | 421.4 |
| P/B ratio | 7.3 |
| Book value | Rs 31.5 |
| EPS | Rs 0.6 |
Value Research ratings
As per Value Research Online, Eternal has an overall rating of 2/5.
Here's how it scores on other parameters.
-
Quality
: 4/10
-
Growth
: 5/10
-
Valuation
: 2/10
- Momentum : 6/10
While momentum and growth look decent, quality and valuation have a lot of catching up to do.
The bottom line
Eternal is building something big, but the stock might have run ahead of itself. But with index-related selling ahead and rich valuations, brace for volatility.
Thinking of entering now? Maybe wait. The technical overhang could offer a better entry point. And as always, keep an eye on whether profits grow alongside sales.
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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.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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