Eternal shares jump 3% after Goldman dismisses bear theories

Following a 17% decline in Eternal shares in last 3 months, global brokerage Goldman Sachs said it disagrees with the extent of bearishness on the Nifty blue-chip new-age stock and sees potential upside to Rs 390, implying a 33% rally from the previous close. The endorsement cheered bulls as Eternal shares rallied around 3% to Rs 292.95 on BSE this morning.

Zomato’s recent stock correction has been driven by concerns over a near-term slowdown in quick-commerce growth and the implications for its medium-term outlook. In addition, some investors are wary of intensifying competition and its potential impact on Blinkit’s margins.

“We disagree with the extent of the bearishness being priced into Zomato's stock, and reiterate our Buy rating with our revised 12m target price of Rs 375 (was Rs 390), implying 33% upside from current levels,” Goldman said, adding that


Following the endorsement from Goldman, Eternal shares were up 1.5% at Rs 287.80 on BSE this morning. The brokerage said Blinkit's implied EV/EBITDA on normalised margins (FY30E) at 14x is at the lower end of our India Internet peer group, despite a significantly superior growth profile.

“We expect Zomato's EBITDA growth to be 50%+ YoY at least until FY30E. Our NOV growth estimates for Zomato in all its segments are lower vs that of management guidance, and in a bull case where we assume management guidance, an implied upside would be 73% vs downside of 22% in a bear case,” it said.

Goldman estimates that Blinkit currently holds around 40-45% market share of India’s quick-commerce industry by net order value (NOV), and expects its FY30E NOV market share to remain broadly in line with current levels.

“We expect quick commerce to be a more than two-player market given its size; taking current dynamics into account, we believe a likely scenario could be Blinkit with 40-45% market share, a couple of players with 15-20% market share each, and another 1-2 sub-scale players,” it said.

At present, there are at least 7 players operating in the industry – Blinkit, Swiggy, Zepto, Jiomart, BigBasket, Amazon, and Flipkart. “However, we expect Blinkit to have more than 100% share of the quick commerce industry profit pool (EBITDA) starting FY27E and for at least the following 2-3 years,” Goldman analysts said in a note.

Among other brokerages, Nuvama Institutional Equities expects Eternal to be among the leaders in revenue growth in Q3 within its internet coverage universe. “We reckon our internet coverage will deliver growth momentum in Q3FY26E,” the brokerage said in a note.

Nuvama has pegged revenue at Rs 15,492 crore for the October-December quarter, implying growth of 187% year-on-year (YoY) and 14% sequentially. Meanwhile, adjusted PAT is expected to decline 84% YoY to Rs 9.3 crore, with a sequential drop of 86% also anticipated.