Eternal Stock Update: Mumbai, 5 June 2025 – Eternal, the parent company of Zomato, has gained 4.42% to Rs 256.35 at 10:06 AM IST on the Bombay Stock Exchange (BSE) today. This is another good day for the company as its shares have gained 12% in the last 5 trading sessions and investors have gained 6% in the last one month. All this shows that investors’ trust in the company is still strong.
But, if we talk about the year 2025, it is still in a loss of 7% on a year-to-date basis. Meaning, the journey from the beginning of the year till now has been a bit unstable. But who knows, this gap may get covered even more in the next few days.
Morgan Stanley’s Endorsement Drives Optimism
Morgan Stanley has retained Eternal as its top pick in the sector, and this is why the company’s stock price is seeing a rise.
The brokerage house has highlighted Eternal’s strong hold in food delivery and quick commerce, as well as praised its efficient cost structure and strong balance sheet. Morgan Stanley believes that these strong points reduce the risk of further equity dilution, making Eternal an attractive investment option for investors.
The brokerage has set a price target of ₹ 320 for Eternal’s stock, which shows a potential upside of 33% from the current level. Also, they have also indicated a support level between ₹ 200–220, which means that even if the stock price falls, support can be found from here. In this way, the risk-reward profile looks quite good for investors in Eternal.
Also Read: Swiggy Share Price Soar 7.3% to Four-Week High After Morgan Stanley’s Bullish ‘Overweight’ Call
Quick Commerce: A Game-Changer for Eternal Stock
A major reason for this bullish outlook is India’s rapidly growing quick commerce market. Morgan Stanley has presented a new estimate of this sector, in which its size is estimated to reach $57 billion by 2030. Earlier this estimate was up to $42 billion. Given this improved prospect, the brokerage has raised the gross order value (total order value) estimate of Eternal’s quick commerce segment by 9–11% for FY26–28.
Although competition in quick commerce is very high, Morgan Stanley expects that losses in this segment will reach their peak in this quarter, and margins will start improving from FY26. At the same time, Eternal’s food delivery business is on a stable growth path, and its contribution margin is estimated to increase from 4.8% in FY26 to 6% by FY28.
Strong Financial Outlook
According to Morgan Stanley, Eternal’s financial performance is expected to show excellent performance in the next few years. The company’s adjusted EBITDA will increase from Rs 1,079 crore in FY25 to Rs 6,548 crore by FY28, meaning that a very solid growth can be seen. And if we talk about net profit, it can increase almost 10 times to reach Rs 5,089 crore by FY28. All this is becoming possible due to the company’s strong core delivery operations and initiatives like Hyperpure, which is Eternal’s supply chain platform.
Triggers for a Stock Re-Rating
Morgan Stanley has listed three key factors that could further boost Eternal’s stock price:
- Strong growth in Quick Commerce: If Eternal’s order volumes continue to grow, the company can further establish its dominance in this high-growth segment.
- Improvement in margins in food delivery: If margins in the food delivery business continue to increase, it will further strengthen the company’s profitability level.
- Stability in competition: If competition in the market is not too aggressive, Eternal can focus on scaling operations and increasing efficiency.
Along with these factors, Eternal’s market leadership position and operational leverage put it in a position to create more value in the long-term.
Also Read: RVNL Share Price Update: Market will fall on 3 June 2025, is this the right opportunity to invest?
Why Investors Are Watching Eternal
Eternal has managed to make a strong foothold in India’s rapidly growing digital economy, especially in the food delivery and quick commerce sector. The company’s strong balance sheet, innovative business model and positive outlook of analysts give it a distinct identity in the market. This is the reason why Eternal has full potential to create value for shareholders even while facing competition.
However, investors should be cautious and do full research before making any decision. It is always good to consult a good financial advisor or broker to understand your risk profile and market conditions.
Disclaimer: The views and projections given here are based on analyst reports and do not reflect the opinion of this publication. Consult a certified financial advisor before taking any investment or trading decision.
