Eternal Ltd, formerly known as Zomato, has recently garnered significant investor attention due to notable movements in its share price. As of June 5, 2025, the company’s stock has experienced a two-day rally exceeding 8%, reaching an intraday high of ₹258.3 on the NSE . This surge follows the release of its Q4 earnings report, indicating positive investor sentiment. This article aims to provide a comprehensive analysis to assist investors in deciding whether to buy, hold, or sell Eternal shares.business-standard.com+7en.wikipedia.org+7economictimes.indiatimes.com+7economictimes.indiatimes.com
- Current Price: ₹258.3 (intraday high on June 5, 2025)
- Recent Performance: Over 8% increase in the past two days
- Market Reaction: The stock’s upward movement suggests a favorable investor response to the company’s financial performance.marketsmojo.com+1economictimes.indiatimes.com+1
Recent News & Announcements Impacting the Stock
- Q4 Earnings: Despite a 78% drop in fourth-quarter profits, attributed to higher expenses from Blinkit’s expansion, investors reacted positively due to Blinkit’s strong performance, with revenue more than doubling year-on-year to ₹17.09 billion.
- Rebranding: Zomato officially changed its corporate name to Eternal Ltd, reflecting its broader business scope beyond food delivery.
- Expansion: Eternal secured approximately 1 lakh square feet of office space in Mumbai’s Andheri suburb, indicating growth and operational expansion .reuters.comen.wikipedia.org+3business-standard.com+3economictimes.indiatimes.com+3economictimes.indiatimes.com
Technical Analysis
- The share price of Eternal exceeds its 5-day, 20-day, and 50-day moving averages, but falls under the 100-day and 200-day ones which reflects some changing short- to medium-term trends.
- Weekly MACD depicts a small increase in the value, while the monthly MACD suggests a small decrease.
- Over 45 million shares traded during the day which demonstrates a rise in the amount of people involved in the market.
Expert Opinions
- Morgan Stanley: Reiterated a bullish outlook on Eternal, setting a target price of ₹320 per share, citing strong Q4 earnings and minimal risk of additional equity dilution .
- Jefferies: Expressed concerns over potential $1.3 billion FII outflow and MSCI exclusion due to the company’s move to limit foreign ownership .economictimes.indiatimes.com+2reuters.com+2economictimes.indiatimes.com+2economictimes.indiatimes.com
Should You Buy, Hold, or Sell?
- Buy: If you believe in the long-term growth potential of Eternal’s diversified business model, including Blinkit’s expansion and the company’s strategic initiatives.
- Hold: If you currently own shares and are waiting for more consistent financial performance or clarity on foreign investment policies.
- Sell: If you’re concerned about the high P/E ratio, potential FII outflows, or the company’s current financial health indicators.reuters.com+1business-standard.com+1economictimes.indiatimes.com
Conclusion
Lately, the share price of Eternal Ltd shows mixed feelings from investors, who are upbeat about Blinkit but have concerns about the company’s finances and relations with countries outside India. Those contemplating an investment should take both timeframe and how much risk they can accept into account. As usual, it’s smart to explore or consult a financial expert before investing your money.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Always consult a certified financial advisor before making any investment decisions. The information provided is based on publicly available sources and may be subject to change.