Morgan Stanley has reiterated its overweight rating on Eternal with a target price of ₹427, stating that the stock currently offers one of the best risk-reward setups in the internet space. The brokerage said it would use the recent correction to accumulate shares, noting that Eternal’s strategy of aggressively expanding customer market share remains sound even if wallet-share metrics such as AOV and frequency scale up later.
Morgan Stanley added that the market is pricing Eternal at a two-year forward EV/GOV multiple of 1.1x for Blinkit, the same level as seen in March 2025, which it believes is undemanding given the platform’s growth visibility. Even in a stress scenario where heightened competitive aggression delays profitability, the brokerage estimates the stock would bottom out around ₹280–285, suggesting limited downside from current levels.
According to the brokerage, Eternal’s long-term positioning remains intact and the company’s focus on share gains over immediate margins provides a favourable base for future monetisation.
Disclaimer: The views above are those of Morgan Stanley. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
