CLSA has maintained its high-conviction outperform rating on Eternal (Zomato Group) with a target price of ₹450 per share after the company reported a much stronger-than-expected second quarter (Q2FY26) performance for Blinkit. The brokerage highlighted that net order value (NOV) for Blinkit significantly exceeded projections, with higher contribution despite an acceleration in stores, users, orders, and average order values (AOV).
However, Blinkit-adjusted EBITDA came in lower than anticipated due to the company’s faster pace of customer acquisition, which temporarily lifted expenses. CLSA said this was a strategic decision by management to drive long-term growth rather than short-term profitability.
The brokerage added that Eternal continues to see strong momentum across its quick commerce vertical and views its current expansion plans as conservative. The company’s internal target of reaching 3,000 dark stores remains intact, with management confident of doubling Blinkit’s net order value by FY27. CLSA reiterated that the growth trajectory of Blinkit and continued gains in market share underpin its bullish stance on the stock.
Disclaimer: The views and recommendations above are those of CLSA. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.