Eternal share price staged a smart rebound on Tuesday, March 16, emerging as the best-performing Sensex stock amid value buying following a 40% crash in the new-age stock from its 52-week high and amid a rebound in the Indian stock market sentiment.
Domestic brokerage JM Financial also reiterated its positive view on the stock in a report today, suggesting that Eternal’s valuation appears increasingly compelling relative to its long-term growth prospects following the recent correction.
Eternal share price trend
Shares of Deepinder Goyal-backed Eternal rose as much as 6.12% to ₹235.65 on the BSE today as the BSE barometer Sensex extended yesterday’s pullback rally to Tuesday. As of 2.20 pm, the Sensex was almost 0.7% higher, reclaiming the 76,000 mark.
As of last close, the parent company of Zomato and Blinkit has lost 39.7% from its 52-week high of ₹368.40 based on Monday’s closing levels. The correction in Eternal shares, which started in the December quarter, continues, with the stock shedding almost 30% during this period.
Last year, Eternal stock had ended flat, up 0.04%, after rallying 125% in 2024 and 108% in 2025.
According to analysts, the decline in Eternal shares follows concerns around valuations, leadership change and higher competitive intensity in the quick commerce and food delivery space. The latest blow was dealt by the cooking gas crisis in India due to oil supply disruptions in the Middle East, which has impacted eateries and restaurants across the country.
Turnaround on cards for Eternal shares?
However, JM Financial believes that while global events are hard to predict, it strongly believes Eternal – particularly its Blinkit business – shall emerge stronger once macro normalises.
In Q4FY26E, Blinkit’s NOV is likely to expand by low double-digit QoQ despite high competitive pressures, though it will be slower than 14% in 3Q, supported by mid-teens’ order volume growth. “We also expect a decent uptick in its adjusted EBITDA margin to 0.4% of NOV versus breakeven in 3QFY26.”
As for Zomato, the concerns around supply-side disruptions linked to gas availability issues might be overstated as long as there is no mass-scale shutdown (a la COVID), given customers can easily shift to operational restaurants, the brokerage opined.
As a result, it maintained the NOV growth forecast of ~18% YoY for Zomato in 4QFY26E (highest in the last seven quarters). It added that even if 25% of orders are disrupted in the final weeks of the quarter, NOV can still grow ~15% YoY. In the last quarter, Zomato’s NOV came in at 16.6%.
JM Financial also believes the impact of new competition in food delivery is “overstated”.
“Investors with 12–18 months’ horizon should aggressively accumulate Eternal at these levels in our view, as the stock is attractively priced at 35x Mar’28E PER. While we are cutting target NTM PE to 65x (from 75x), factoring in global macros and competitive risks, our target price is unchanged at ₹400 on a rollover to Mar’27E,” it said. Based on today’s high, Eternal share price target signals 69.7% upside.
On the technical front, the price structure is also suggesting a rise from the current levels. Anshul Jain, Head of Research, Lakshmishree, said that Eternal has reached a critical inflection zone near the weekly swing low of 221.
“The recent sweep below this level signals a liquidity grab, often preceding short-term reversals. Price structure suggests exhaustion on the downside, with a high-probability bounce toward 244.5, the prior swing high. Sustained strength above this zone could extend the recovery toward 256, aligning with the 50% retracement of the entire fall,” he opined.
Risk-reward favors tactical longs with disciplined stops below recent lows, according to the expert.
Disclaimer: This story is for educational purposes only. 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.
