Eternal Ltd.
Consumer Goods · NSE
52-week range
₹213 – ₹368
From 52w high
-33.3%
RSI (14)
46.6
vs SMA 50 / 200
↑ 50 · ↓ 200
Eternal (formerly Zomato) is a quick-commerce and food-delivery platform trading at ₹256.39, 30.4% off its 52-week high and 11.5% below its 200-day SMA. Q4 FY26 net profit rose 71% QoQ to ₹174 crore, and management has guided toward a $1B adjusted EBITDA target by FY29, anchored on Blinkit growth. The business carries a debt-to-equity of 14.83 with ROE of 1.19% and a profit margin of 0.67%, reflecting an early-stage profitability profile against a premium forward multiple of 62.8x.
- ✓Revenue has grown 196.5% and earnings 375% over 5 years, reflecting rapid scaling of the Blinkit and food-delivery segments from a low base.
- ✓Q4 FY26 net profit of ₹174 crore beat estimates, rising 71% QoQ — the first signs of operating leverage materialising at the consolidated level.
- ✓Mean analyst rating of 1.53 across 32 analysts (1–5 scale, lower = more constructive), indicating broad coverage with a constructive skew by the numerical score.
- ✓Price is 5.5% above the 50-day SMA (₹243.07), and RSI sits at 55.84 (neutral zone), with near-term support identified at ₹250.5 and ₹242.65.
- ✗D/E of 14.83 is far above typical consumer-sector norms, combined with FCF positive in only 1 of the tracked years and a rising debt trend — structural leverage risk is elevated.
- ✗ROE of 1.19% has never exceeded 15% in any tracked year; quality score of 41/100 and consistency score of 20/100 reflect thin and uneven profitability over the measurement window.
- ✗Stock is 30.4% below its 52-week high and has traded below the 200-day SMA; the 9.43% 1-year price gain masks peak-to-trough deterioration of nearly a third.
- ✗Forward PE of 62.76 with no trailing PE available and a profit margin of 0.67% means valuation is entirely dependent on future earnings delivery — the gap between current profitability and the implied growth path is wide.
- ·Q4 FY26 results (April 28) showed net profit up 71% QoQ to ₹174 crore and management outlined a $1B adjusted EBITDA target by FY29, with Blinkit cited as the primary growth engine — both figures drew significant media coverage across CNBC TV18 and Moneycontrol.
- ·HSBC published a note (covered by The Economic Times) stating the stock is unlikely to be a linear compounder and flagging execution headaches for Blinkit — a specific cautionary framing from a named broker against the prevailing positive earnings narrative.
- ·Of 8 recent news items, 6 are positive in sentiment, 1 neutral, and 1 negative; the negative item is the HSBC note, which carries named-analyst weight on a structural growth-path question rather than a near-term data point.
- ?Does the $1B EBITDA target by FY29 require Blinkit to sustain its current growth trajectory, and what assumptions about dark-store unit economics underpin that figure?
- ?Given D/E of 14.83 and FCF positive in only 1 tracked year, how is the company funding ongoing expansion — equity dilution, operating cash, or incremental debt — and what does that imply for per-share value over time?
- ?HSBC noted the stock is unlikely to be a linear compounder: what specific Blinkit headaches were cited, and how does management address them in the investor communications?
- ?The forward PE of 62.76 implies significant earnings growth is already priced in; at what profit margin and revenue level would that multiple be consistent with the historical earnings multiples of comparable scaled platform businesses?
PE
—
Forward PE
62.8
ROE
+1.2%
Profit margin
+0.7%
D/E
14.83
Dividend yield
—
Quality score
41/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
1/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.