Eternal shares: JM Financial sees 15% upside, bullish on Blinkit, Zomato; here’s why
JM Financial believes Blinkit is set to continue its streak of "meaningful market share gains" in the near term.
- Oct 9, 2025,
- Updated Oct 9, 2025 12:02 PM IST
Domestic brokerage firm JM Financial has reiterated its ‘Buy’ recommendation for Eternal (erstwhile Zomato), setting a revised target price of Rs 400 per share. This suggests a potential upside of over 15 per cent from the current market price of Rs 345.50.
The brokerage raised its target, citing strong and improving trends across the company's key business verticals. The note, dated October 8, highlights that Eternal is "playing in a league of its own".
The primary driver for the bullish outlook is the exceptional performance of Eternal's quick commerce arm, Blinkit. JM Financial believes Blinkit is set to continue its streak of "meaningful market share gains" in the near term.
This growth is backed by an aggressive expansion of its supply chain, with the report suggesting Blinkit is on track to add 200-250 dark stores every quarter. The brokerage notes that this rapid investment in its network provides a competitive advantage, especially as rivals appear to be slowing down expansion to improve profitability. Furthermore, Blinkit is on a clear trajectory to "break-even in 3QFY26" due to scale benefits and a shift to an inventory-led model.
In the food delivery segment, Zomato, the brokerage notes that the Net Order Value (NOV) growth "seems to have bottomed out" after four consecutive quarters of moderation. It anticipates an acceleration in year-on-year growth trends from the second quarter of FY26 onwards, supported by an easing base. JM Financial expects food delivery margins to remain stable and within a "sustainable range of 5-6 per cent as per cent of NOV". The report suggests that the adverse impact of lowering the Minimum Order Value (MOV) on subscription orders will likely be balanced by an increase in platform fees.
Reflecting these positive developments, JM Financial has revised its financial models. It has raised its NOV estimates for Blinkit by approximately 7 per cent-20 per cent and for Zomato by 1 per cent-5 per cent for the period of FY26-28.
While FY26 EPS estimates were reduced by about 18per cent to account for higher investments, the EPS estimates for FY27 and FY28 have been increased by 4-8 per cent. The new target price of Rs 400 is based on a rolled-forward valuation and an increased target multiple of "80x NTM EPS (75x earlier)". The brokerage concludes, "we believe Eternal is likely to report improving trends across both its key businesses in the near term".
Domestic brokerage firm JM Financial has reiterated its ‘Buy’ recommendation for Eternal (erstwhile Zomato), setting a revised target price of Rs 400 per share. This suggests a potential upside of over 15 per cent from the current market price of Rs 345.50.
The brokerage raised its target, citing strong and improving trends across the company's key business verticals. The note, dated October 8, highlights that Eternal is "playing in a league of its own".
The primary driver for the bullish outlook is the exceptional performance of Eternal's quick commerce arm, Blinkit. JM Financial believes Blinkit is set to continue its streak of "meaningful market share gains" in the near term.
This growth is backed by an aggressive expansion of its supply chain, with the report suggesting Blinkit is on track to add 200-250 dark stores every quarter. The brokerage notes that this rapid investment in its network provides a competitive advantage, especially as rivals appear to be slowing down expansion to improve profitability. Furthermore, Blinkit is on a clear trajectory to "break-even in 3QFY26" due to scale benefits and a shift to an inventory-led model.
In the food delivery segment, Zomato, the brokerage notes that the Net Order Value (NOV) growth "seems to have bottomed out" after four consecutive quarters of moderation. It anticipates an acceleration in year-on-year growth trends from the second quarter of FY26 onwards, supported by an easing base. JM Financial expects food delivery margins to remain stable and within a "sustainable range of 5-6 per cent as per cent of NOV". The report suggests that the adverse impact of lowering the Minimum Order Value (MOV) on subscription orders will likely be balanced by an increase in platform fees.
Reflecting these positive developments, JM Financial has revised its financial models. It has raised its NOV estimates for Blinkit by approximately 7 per cent-20 per cent and for Zomato by 1 per cent-5 per cent for the period of FY26-28.
While FY26 EPS estimates were reduced by about 18per cent to account for higher investments, the EPS estimates for FY27 and FY28 have been increased by 4-8 per cent. The new target price of Rs 400 is based on a rolled-forward valuation and an increased target multiple of "80x NTM EPS (75x earlier)". The brokerage concludes, "we believe Eternal is likely to report improving trends across both its key businesses in the near term".