Nomura has reiterated its buy call on Eternal with a target price of ₹370 per share. At the current market price of ₹329.50, the target implies an upside of about 12 percent.
The brokerage said Eternal’s food delivery business is on a steady growth path and continues to show improving profitability. In the quick commerce vertical, contribution margins are bottoming out, and Nomura expects the inventory-led model to aid margin expansion over the coming years.
Nomura values Eternal’s businesses at 40x FY28 EV/EBITDA for the food delivery segment and 1.2x EV/GOV for the quick commerce segment. It highlighted that the company’s long-term potential remains strong, but noted that key risks include a slowdown in food delivery growth and rising competition in quick commerce.
At current levels, Nomura believes Eternal offers room for upside while continuing to build scale across its food and quick commerce businesses.
Disclaimer: The views and investment recommendations expressed above are those of Nomura. They do not represent the views of this publication. This article is for informational purposes only and is not investment advice.
