Eternal, the parent company of Zomato and Blinkit, has been steadily climbing since late October, scaling multiple record highs. The latest milestone came in Wednesday’s trade, when the stock touched ₹372, surpassing its previous peak of ₹365.70.
The latest rally has lifted Eternal’s year-to-date gains to 30%, while investors who have held the stock since its IPO in 2021 have enjoyed significantly higher returns. From its IPO price of ₹76 per share, the stock has surged 375% as of Wednesday’s close of ₹361, making it one of the biggest multibagger IPOs in recent years.
The company’s strong execution in the quick-commerce business and improving profitability, despite intensifying competition in the industry, have encouraged investors to accumulate the stock, even as some analysts have cautioned against its expensive valuations.
Eternal, formerly known as Zomato, made a strong debut on the stock exchanges in 2021, listing at a premium of more than 52% over its IPO price at ₹116 apiece.
Although the rally faced a setback in 2022, with the stock ending the year down 57%, it managed to recover those losses in the subsequent period, delivering multibagger returns over the following two years.
Meanwhile, the shares began 2026 on a tepid note, ending the first three months of the year in the red, with the sell-off dragging the stock to a nearly one-year low. However, the stock’s fortunes turned in April, and the rally has only gathered strength since then.
From its March low of ₹212.60 apiece, the stock has recovered 71% to Wednesday’s closing price. The sharp turnaround has made it the biggest recovery story among Nifty constituents in 2026.
Blinkit’s expansion, improving profitability keep brokerages bullish on Eternal
Eternal expects growth in its quick-commerce business Blinkit to accelerate from the December quarter, supported by a more stable competitive environment that could allow it to expand its dark-store network faster without compromising margins.
Blinkit added 308 net new stores in the September quarter, taking its network to 2,751. Eternal aims to expand this to more than 3,500 stores by March 2027 and around 5,000 by March 2028, with a significant portion of the additions expected in smaller cities.
Blinkit’s net order value surged 79.3% year-on-year to ₹20,940 crore in Q2 FY27, while adjusted EBITDA stood at ₹184 crore, marking its sixth consecutive quarter of margin improvement.
Brokerages remain optimistic about Eternal’s growth prospects. Motilal Oswal sees the company benefiting from its established food delivery platform and expanding quick-commerce operations, with food delivery net order value growth targeted at over 20%.
Kotak Neo has a Buy rating with a target price of ₹435, implying an upside of 26.5% from its reference price of ₹ ₹344.
It expects Eternal to deliver a 63% revenue CAGR over FY26–FY29, with EBITDA margins expanding from 2.2% in FY26 to 4.6% by FY29, supported by growth across food delivery and quick commerce.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
