Jefferies has upgraded Eternal Ltd to a Buy rating and raised its target price to ₹400, implying a potential upside of 45% from the current market price of ₹276.50. The upgrade follows a notably optimistic management commentary and improving business outlook, especially in the quick commerce (Q/C) segment.
While the first quarter was mixed in terms of performance, Jefferies noted a marked shift in tone from previous quarters. Management expressed greater confidence in margin trends and competitive pressures appearing to ease, suggesting the worst may be behind. This optimism is further supported by the expected benefits from 1P (first-party) initiatives.
Jefferies also highlighted the following:
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Strong growth momentum continues, albeit with moderation in food delivery
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Quick commerce segment continues to outperform and is gaining strategic relevance
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Margin profile is expected to remain stable in the short term, with potential expansion ahead
The brokerage believes Eternal is now better positioned for growth, backed by improving profitability metrics and a stronger outlook in both its key verticals—food delivery and Q/C.
Disclaimer: This article is based on brokerage reports and is not a recommendation to buy or sell any securities. Investors are advised to consult a certified financial advisor before making investment decisions.
