Eternal Ltd.
NSE: ETERNALEternal Ltd.: A 30-second snapshot
Eternal (formerly Zomato) is a high-growth internet-consumer platform trading at ₹264.3, 28.3% below its 52-week high and 6.0% below the 200-DMA, with a forward PE of 64.59 despite a trailing profit margin of just 0.67%. The company has delivered 196.5% 5-year revenue growth and 375% 5-year earnings growth, yet return on equity stands at 1.19% — last among its reported Consumer Goods sector peers — and debt-to-equity is 14.83, well above any non-financial peer in the group.
P/E
—
Forward P/E
64.6
ROE
+1.2%
Debt / Equity
14.83
Profit Margin
+0.7%
Div. Yield
—
5Y ROE > 15%
0/5
5Y FCF > 0
1/5
Quality
45/100
News
8 headlines · 5 positive · 1 negative
Eternal faces Rs 9.63 crore GST demand from Andhra Pradesh - Indian Television Dot Com
Indian Television Dot Com
Eternal's District ramps up sports push, eyes acquisitions - The Economic Times
The Economic Times
Buy Eternal Ltd For Target Rs. 340 Motilal Oswal Financial services Ltd - Investment Guru
Investment Guru
Motilal Oswal sector of the week: Internet; here's why Eternal is top bet - Business Standard
Business Standard
Eternal Ltd closes trading window till Q1FY26 results - scanx.trade
scanx.trade
Recent context
- ·Eternal closed its trading window ahead of Q1 FY26 results (June 19, 2026), signalling an upcoming earnings disclosure that may resolve some near-term uncertainty around the pace of profitability.
- ·A Rs 9.63 crore GST demand was issued by Andhra Pradesh tax authorities (June 10, 2026) — modest relative to company scale but indicative of ongoing regulatory compliance exposure in a multi-state operation.
- ·Motilal Oswal named Eternal its top internet sector pick in late May 2026, citing sector tailwinds; the District arm is separately exploring sports-vertical acquisitions, expanding the company's bet beyond core food delivery.
Strengths
- +5-year revenue growth of 196.5% and 5-year earnings growth of 375% represent a scale-up pace that is markedly faster than the peer group average in the Consumer Goods sector.
- +Price has recovered 15.6% over the past 3 months and sits above the 50-DMA (₹249.87), with RSI at 62.24 (neutral-to-firm momentum without entering overbought territory).
- +Mean analyst rating of 1.53 across 32 analysts (1–5 scale, lower = more constructive) reflects a broadly constructive sell-side view at current levels.
- +The District sports vertical is actively pursuing acquisitions (Economic Times, June 2026), indicating the company is expanding its addressable market beyond food delivery.
Weaknesses
- −D/E of 14.83 with FCF positive in only 1 of tracked years and a rising debt trend signals heavy external financing dependency; this is the highest leverage ratio among the 6 reported Consumer Goods peers by a wide margin.
- −ROE of 1.19% has never exceeded 15% in any tracked year; consistency score of 20/100 and quality score of 41/100 are among the lowest in the peer group, placing the company last in capital efficiency despite its growth trajectory.
- −Price remains 6.0% below the 200-DMA (₹281.04) and 28.3% below the 52-week high; the stock spent the bulk of the past year trading below its long-term moving average, indicating sustained selling pressure at higher price levels.
- −Forward PE of 64.59 on a 0.67% trailing profit margin leaves little room for earnings execution risk; peers such as TITAN (ROE 37.1%) and TRENT (ROE 27.1%) trade at similar or higher PEs with substantially superior capital efficiency metrics.
Open questions
- ?Does the 375% 5-year earnings growth represent a structural inflection toward sustained profitability, or does the 0.67% trailing margin suggest the bottom line remains highly sensitive to promotional and delivery cost cycles?
- ?At a D/E of 14.83 with FCF positive in only 1 tracked year, what conditions would be required for the company to reduce leverage without diluting equity shareholders?
- ?How much of the forward PE of 64.59 reflects expected margin expansion in the core delivery business versus speculative value attributed to newer segments like District and quick commerce?
- ?If the 200-DMA (₹281.04) continues to act as a ceiling, what would change in the fundamental outlook to shift the balance of overhead supply at that level?
Peer comparison: Consumer Goods
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ETERNAL | Eternal Ltd.You're viewing | — | +1.2% | 41 |
| Industry avg | across 5 peers | 76.2 | +22.9% | 48 |
| INDHOTEL | Indian Hotels Co. Ltd. | 49.3 | +16.4% | 60 |
| ASIANPAINT | Asian Paints Ltd. | 60.7 | +20.9% | 58 |
| TRENT | Trent Ltd. | 98.9 | +27.1% | 49 |
| DMART | Avenue Supermarts Ltd. | 94.6 | +12.9% | 37 |
| TITAN | Titan Company Ltd. | 77.4 | +37.1% | 34 |
Technical state
Current price
₹264.30
SMA 50
₹249.87
SMA 200
₹281.04
RSI (14)
62.2 (neutral)
From 52w high
-28.3%
1Y return
+6.9%
3M return
+15.6%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highD/E of 14.83 is extreme for a Consumer Goods non-bank company; FCF was positive in only 1 of tracked years with a rising debt trend, indicating narrow solvency headroom and limited internal funding capacity.
- highROE of 1.19% has not exceeded 15% in any tracked year (roeYearsAbove15 = 0); consistency score 20/100 and quality score 41/100 reflect structurally thin capital returns. Forward PE of 64.59 on a trailing profit margin of 0.67% prices in aggressive growth execution with no margin for shortfall.
- mediumPrice ₹264.3 is 6.0% below the 200-DMA (₹281.04) and 28.3% below the 52-week high; stock has recovered above its 50-DMA (₹249.87) but longer-term price trend remains negative after 9+ months below the 200-DMA.
- mediumROE of 1.19% ranks last (6th of 6) among reported sector peers whose ROEs range from 12.94% (DMART) to 37.13% (TITAN); quality score of 41 ranks 4th of 6, trailing INDHOTEL (60), ASIANPAINT (58), and TRENT (49).
- lowNews sample is sparse at 8 items total (June 2026 window), limiting confidence in the positive sentiment read (5 positive, 2 neutral, 1 negative). A Rs 9.63 crore GST demand notice from Andhra Pradesh was issued in June 2026.
Cross-section contradictions
- 5-year revenue growth of 196.5% and earnings growth of 375% contrast with a 28.3% drawdown from the 52-week high and only +6.9% price return over 1 year — reported historical growth has not translated into commensurate price appreciation over that period.
- News sentiment is net positive (5 positive vs 1 negative of 8 items) yet the stock remains 6.0% below its 200-DMA, indicating a divergence between recent news tone and the prevailing price trend.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 21 Jun 2026 · rotates through NIFTY 500 every ~5 days