Morgan Stanley has maintained its Overweight rating on Eternal with a target price of ₹320, implying a potential upside of 22.5% from the current market price of ₹261.20. The rating comes in the wake of a leadership transition in the company’s food ordering and delivery business.
Eternal has appointed Aditya Mangal as the new CEO for its food delivery vertical. Mangal has been with the company since 2021 and most recently served as the head of product for the same business segment. Morgan Stanley noted that while leadership changes at the senior level may trigger mixed investor reactions, past experience shows that the company has consistently grown through similar transitions.
Drawing parallels with Zomato’s trajectory, Morgan Stanley pointed out that Eternal has managed to grow its market share over the last four years, despite undergoing several leadership changes. The brokerage believes the new appointment reaffirms the company’s focus on execution and continuity in strategic direction.
Disclaimer: The views expressed above are those of Morgan Stanley and do not constitute investment advice. This article is for informational purposes only.
