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Eternal (formerly Zomato) saw its shares climb 5.17 per cent on the BSE by mid-morning on Thursday (June 5, 2025), marking a 12 per cent rise over the past five trading sessions.
What's driving the recent rally?
Several factors contribute to Eternal's recent stock performance.
- Analyst optimism: Morgan Stanley reiterated its bullish stance, setting a target price of Rs 320 per share. The brokerage highlights Eternal's market leadership in food delivery and quick commerce, a strong balance sheet and favourable risk-reward dynamics.
- Institutional investments: The substantial purchase by BNP Paribas of shares worth Rs 1,484 crore underscores confidence in Eternal's growth trajectory.
Q4 FY25 results: A mixed bag
| Metric | Q4 FY25 | Q4 FY24 | YoY change |
|---|---|---|---|
| Revenue from operations | Rs 5,833 crore | Rs 3,562 crore | 63.8 per cent |
| Total income | Rs 6,201 crore | Rs 3,797 crore | 63.3 per cent |
| Total expenses | Rs 6,104 crore | Rs 3,636 crore | 67.9 per cent |
| Profit before tax (PBT) | Rs 97 crore | Rs 161 crore | -39.8 per cent |
| Net profit (PAT) | Rs 39 crore | Rs 175 crore | -77.7 per cent |
| Basic EPS | Rs 0.04 | Rs 0.20 | -80.0 per cent |
About the company
Eternal Ltd, headquartered in Gurugram, Haryana, is a leading player in India's online services sector. The company operates popular platforms like Zomato (food delivery), Blinkit (quick commerce) and Hyperpure (B2B supplies). Founded in 2010, Eternal has expanded its footprint across various segments, aiming to cater to the evolving needs of digital consumers.
Here’s how the company’s fundamentals look.
| Metric | Value |
|---|---|
| Market cap | Rs 2.4 lakh crore |
| ROE | 1.9 per cent |
| ROCE | 1.8 per cent |
| P/E ratio | 449.6 |
| P/B ratio | 7.8 |
| Book value | Rs 31.5 |
| EPS | Rs 0.6 |
Value Research Online 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: 5/10
The bottom line
Eternal's recent stock performance reflects positive market sentiment driven by institutional investments and analyst endorsements. However, the company's declining profitability and high valuations warrant a cautious approach.
Thus, investors should weigh the growth prospects against the financial challenges before making investment decisions.
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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.
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