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Eternal shares erased early loss as it bagged buy recommendations from brokerages despite cautious tone following 78 per cent fall in Q4 net profit in March 2025 quarter.
Eternal, Zomato and Blinkit’s parent company, posted consolidated net profit of ₹39 crore in the said quarter as against ₹175 crore in the corresponding period of the previous fiscal. The consolidated revenue from operations was up 64 per cent to ₹5,833 crore.
Nuvama Institutional Equities stated that Blinkit reported lower-than-expected losses despite an accelerated pace of dark store additions in Q4. However, contribution margin improved, even with dilution from newly opened dark stores.
Adding that the EBIDTA losses would decline from next quarter, Nuvama maintained buy recommendation at a reduced target price from ₹300 to ₹290.
Nomura has maintained buy at a revised target price of ₹280 from ₹290. Jefferies has also trimmed the target price to ₹250, maintaining hold. Morgan Stanley maintained overweight at a target price of ₹290.
Motilal Oswal reiterated buy at a target price of ₹260, observing that Zomato expects competition to rise in both grocery and non-grocery quick commerce (QC), including pressure from next-day delivery players accelerating their speed, in contrast to street expectations.
Motilal has reduced estimates for FY26/27 by 52 per cent/27 per cent, due to uncertainty arising from intense competition and the accelerated expansion of the dark store network. “This expansion has led to reduced profitability due to increased investments,” it added.
Eternal shares rose 2.92 per cent to ₹239.31 on the NSE as at 10.42 am, close to intraday high of ₹239.44. The stock opened lower at ₹220.05.
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Published on May 2, 2025
This article first appeared on The Hindu Business Line
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