Eternal (Zomato) shares rose nearly 2% in early trade on Friday, reaching a new 52-week high of ₹332.55 after Motilal Oswal turned more positive on India’s internet sector. The brokerage highlighted improving prospects for Eternal as the food delivery (FD) and quick commerce (QC) segments show signs of recovery from recent challenges. Motilal Oswal reiterated its “Buy” rating on Eternal (Zomato) with a target price of ₹420.
The brokerage noted that the food delivery segment, previously capped at 17–18% growth due to weak demand and cost pressures, is expected to accelerate beyond 20% over the next two to four quarters, supported by festive demand and favourable GST reforms.
In the quick commerce segment, competitive pressures are easing as new entrants struggle to scale and dark store expansion slows. Leading players are focusing on cost-cutting measures, which has helped reduce discounting and customer acquisition costs. GST reforms are also expected to boost QC adoption in non-metro areas.
Reflecting these sectoral tailwinds, Motilal Oswal has raised its growth estimates for Eternal to 21–23% for FY26–27 and increased its valuation multiple to 35x FY27E adjusted EBITDA from 27x previously. The brokerage also expects quicker breakeven timelines for quick commerce operations like Instamart and Blinkit, highlighting improving profitability trends.
According to Motilal Oswal, accelerating growth, easing competition, and policy support provide a constructive outlook for Eternal, positioning the company as a key beneficiary in India’s food delivery and quick commerce ecosystem.
Eternal (Zomato) shares opened at ₹327.55, with the day’s low at ₹326.30 and the high reaching ₹332.55, marking a fresh 52-week peak from the previous low of ₹194.80.
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