Eternal shares: 75% upside? Zomato, Blinkit parent gets 27 'Buy' calls post Q1 results
Eternal share price: Jefferies' Vivek Maheshwari suggested a target of Rs 415 on the stock. Gaurav Malhotra of Axis Capital sees Eternal at Rs 405 apiece.
- Jul 23, 2026,
- Updated Jul 23, 2026 12:59 PM IST
Eternal Ltd, the parent of Zomato and Blinkit, rose 4 per cent on Thursday, bringing its total gain to 34 per cent since its March low. Despite this strong rally, 27 of the 29 latest analyst recommendations on the stock remained 'Buy', 'Outperform' or 'Overweight' with the consensus target hinting at more than 20 per cent upside from the stock's current price. The highest post-Q1 target for Eternal, by CLSA analyst Aditya Soman at Rs 506, even suggested a potential upside of 75 per cent from Thursday's trading price of Rs 289.90 apiece.
Among the most bullish calls, Jefferies' Vivek Maheshwari suggested a target of Rs 415 on the stock. Gaurav Malhotra of Axis Capital sees Eternal at Rs 405 apiece. Analysts at JM Financial, Emkay Global and Elara Securities set a target of Rs 400 each for the Eternal stock.
A 20 per cent year-on-year (YoY) net order value (NOV) growth in Food delivery (FD) was a positive surprise, and sustained improvement in profitability despite growth investments underlined the health of the business, said analysts at ICICI Securities.
The brokerage cited the management indicating that tight inventory control yielded significantly lower net working capital (NWC) requirement in Q1, in addition to scale benefits and supply chain optimisation.
"We think the revised guidance on steady-state Ebitda margin in quick commerce (QC( is a consequence of these savings. We endorse the view that discount-driven customer additions in a grocery-heavy format like QC (designed to deliver convenience over value) is unlikely to drive customer loyalty. Maintain BUY," it said while suggesting a target of Rs 360 on the stock.
Nomura India cited improving QC profitability despite high competitive intensity, as it upped its target on Eternal to Rs 350 from Rs 340 earlier.
"We expect Zomato to post 18-21 per cent YoY NOV growth with contribution margin of 10.6-11.2 per cent (as percentage of NOV) and adjusted Ebitda margin of 5.8-6.7 per cent in FY27-28F," Nomura said.
MOFSL said the business model is now established and competition is being more ‘predictable’, noting that the management expects structurally higher margins going forward.
"While continued elevated competition may lead to near term gains being pruned, this guidance upgrade is a positive. Management's long-term target of 60 per cent and NOV growth, coupled with an Ebitda target of $1 billion by FY29, appears increasingly achievable. Our estimates continue to factor in this long-term trajectory," MOFSL said.
JM Financial has maintained its FD NOV estimates for FY27–29E, while increasing its adjusted Ebitda forecast by 2–3 per cent, citing better-than-expected margin in Q1.
"For Blinkit, we raise FY27–29E NOV by 1–9 per cent on the back of sharp increase in order volumes /MTU base. However, we moderate our profitability assumptions by 30–40bps to account for the structural impact of minimum wage hikes across a few states and higher rental payouts associated with the accelerated network expansion," it said.
Elara said it does snot expect material near-term re-rating in valuation multiples, but sustained execution on profitability should drive medium-term upside. It said the implied FY29 Ebitda requires a 38 per cent CQGR in the next 12 quarters, warranting close monitoring.
"We also believe Blinkit’s ad revenue is highest among peers and may incrementally contribute Rs 2,000 crore alone to EBITDA by FY28E, even without change in current unit economics, increasing our confidence in execution," Elara said.
Eternal Ltd, the parent of Zomato and Blinkit, rose 4 per cent on Thursday, bringing its total gain to 34 per cent since its March low. Despite this strong rally, 27 of the 29 latest analyst recommendations on the stock remained 'Buy', 'Outperform' or 'Overweight' with the consensus target hinting at more than 20 per cent upside from the stock's current price. The highest post-Q1 target for Eternal, by CLSA analyst Aditya Soman at Rs 506, even suggested a potential upside of 75 per cent from Thursday's trading price of Rs 289.90 apiece.
Among the most bullish calls, Jefferies' Vivek Maheshwari suggested a target of Rs 415 on the stock. Gaurav Malhotra of Axis Capital sees Eternal at Rs 405 apiece. Analysts at JM Financial, Emkay Global and Elara Securities set a target of Rs 400 each for the Eternal stock.
A 20 per cent year-on-year (YoY) net order value (NOV) growth in Food delivery (FD) was a positive surprise, and sustained improvement in profitability despite growth investments underlined the health of the business, said analysts at ICICI Securities.
The brokerage cited the management indicating that tight inventory control yielded significantly lower net working capital (NWC) requirement in Q1, in addition to scale benefits and supply chain optimisation.
"We think the revised guidance on steady-state Ebitda margin in quick commerce (QC( is a consequence of these savings. We endorse the view that discount-driven customer additions in a grocery-heavy format like QC (designed to deliver convenience over value) is unlikely to drive customer loyalty. Maintain BUY," it said while suggesting a target of Rs 360 on the stock.
Nomura India cited improving QC profitability despite high competitive intensity, as it upped its target on Eternal to Rs 350 from Rs 340 earlier.
"We expect Zomato to post 18-21 per cent YoY NOV growth with contribution margin of 10.6-11.2 per cent (as percentage of NOV) and adjusted Ebitda margin of 5.8-6.7 per cent in FY27-28F," Nomura said.
MOFSL said the business model is now established and competition is being more ‘predictable’, noting that the management expects structurally higher margins going forward.
"While continued elevated competition may lead to near term gains being pruned, this guidance upgrade is a positive. Management's long-term target of 60 per cent and NOV growth, coupled with an Ebitda target of $1 billion by FY29, appears increasingly achievable. Our estimates continue to factor in this long-term trajectory," MOFSL said.
JM Financial has maintained its FD NOV estimates for FY27–29E, while increasing its adjusted Ebitda forecast by 2–3 per cent, citing better-than-expected margin in Q1.
"For Blinkit, we raise FY27–29E NOV by 1–9 per cent on the back of sharp increase in order volumes /MTU base. However, we moderate our profitability assumptions by 30–40bps to account for the structural impact of minimum wage hikes across a few states and higher rental payouts associated with the accelerated network expansion," it said.
Elara said it does snot expect material near-term re-rating in valuation multiples, but sustained execution on profitability should drive medium-term upside. It said the implied FY29 Ebitda requires a 38 per cent CQGR in the next 12 quarters, warranting close monitoring.
"We also believe Blinkit’s ad revenue is highest among peers and may incrementally contribute Rs 2,000 crore alone to EBITDA by FY28E, even without change in current unit economics, increasing our confidence in execution," Elara said.