Stock Market Strategy : Eternal Q2 Results: Profit Jumps 92%, CLSA Sees ₹513 Target – Should Investors Buy?
Eternal Ltd, the parent company of Zomato and Blinkit, is gaining attention in the Indian stock market after reporting strong Q2 results. The company's profit nearly doubled, while brokerages shared different target prices ranging from ₹225 to ₹513. With growing demand for food delivery and quick commerce, investors are now watching Eternal's future growth and profitability.
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Eternal Q2 Results: Key Highlights- Profit Growth: Net profit rose nearly 92% to ₹125 crore from ₹65 crore last year, but missed market expectations of ₹280 crore.
- Strong Revenue: Adjusted revenue reached ₹24,621 crore, beating estimates of ₹23,448 crore.
- EBITDA Growth: Adjusted EBITDA increased 20% quarter-on-quarter to ₹666 crore, below the expected ₹775 crore.
- Blinkit Performance: Blinkit reported its third consecutive quarter of positive adjusted EBITDA, supporting the company's quick-commerce expansion.
Eternal Share Price Targets: What Are Brokerages Saying?
Following the Q2 results, most brokerages maintained positive views on Eternal, although target prices varied significantly.
| Brokerage | Target Price |
| -------------- | ------------ |
| CLSA | ₹513 |
| Jefferies | ₹430 |
| JPMorgan | ₹420 |
| Morgan Stanley | ₹417 |
| Goldman Sachs | ₹400 |
| Macquarie | ₹225 |
The average 12-month analyst target stands at ₹381, indicating around 22% potential upside from Eternal's October 21 closing price of ₹312.35. However, Macquarie remains cautious, suggesting possible downside risk. These are analyst estimates, not guaranteed returns.
Why Are Analysts Positive About Eternal?
- Blinkit Expansion: Faster store expansion and growing orders could support future revenue.
- Stable Food Delivery: Zomato's food delivery business continues to maintain steady operations and margins.
- Improving Profitability: Blinkit's positive adjusted EBITDA signals progress toward a more sustainable business.
- Long-Term Growth: Increasing quick-commerce demand creates opportunities, although competition and costs remain important risks.
What Should Investors Do?
For Short-Term Traders
- Watch Eternal's share price movement after Q2 results.
- Track trading volumes, support and resistance levels.
- Follow brokerage updates and market sentiment.
- Use proper risk management in volatile conditions.
For Long-Term Investors
- Monitor Blinkit's expansion and future profitability.
- Track Zomato's food delivery growth and margins.
- Compare company valuation with future earnings potential.
- Follow disciplined stock market strategies while considering competition and business risks in the Indian stock market.
Conclusion
Eternal's Q2 results show strong revenue growth, improving profitability and promising Blinkit expansion. However, earnings below expectations and widely different brokerage targets suggest that investors should remain cautious. In the Indian stock market, focusing on business fundamentals, valuation and proper risk management is more important than following price targets alone.
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Investment in the securities market is subject to market risk.
