Eternal Share Price Rises 6% Despite 40% Correction; JM Financial Sees Strong Upside
Eternal Stock Gains as Brokerage Flags Buying Opportunity
Shares of Eternal Ltd, the parent company of Zomato and Blinkit, rose around 6% on Tuesday, March 17, even after witnessing a sharp correction of nearly 40% from recent highs. The rebound comes as brokerage firm JM Financial identified current levels as an attractive entry point for investors with a medium-term horizon.The stock was trading 6.11% higher at ₹235.58 during the session, although it remains down about 17% so far in 2026.
Valuation Turns Attractive After Sharp Correction
According to JM Financial, Eternal’s valuation has become compelling following the recent decline. The brokerage noted that the stock is currently trading at nearly 35 times its estimated FY28 earnings, making it attractive for accumulation.The correction was initially triggered by concerns related to leadership changes and intensifying competition in the quick commerce segment. More recently, sentiment has been impacted by potential new entrants in food delivery and broader global uncertainties, including AI-related disruptions and geopolitical tensions in the Middle East.
Blinkit Growth and Margin Recovery in Focus
Despite near-term challenges, JM Financial expects Eternal’s quick commerce arm, Blinkit, to strengthen its position over time.For Q4FY26, Blinkit’s net order value is projected to grow in low double digits sequentially, supported by mid-teen growth in order volumes. This is slightly lower than the 14% growth recorded in the previous quarter.
The brokerage also expects an improvement in Blinkit’s adjusted EBITDA margin to 0.4% of net order value, compared to breakeven levels in Q3.
Food Delivery Concerns Seen as Overstated
On the food delivery front, JM Financial indicated that concerns regarding supply disruptions due to gas availability issues may be overstated. It noted that demand could shift to operational restaurants unless there is a widespread shutdown across the sector.Strong Analyst Backing and Upside Potential
JM Financial has maintained its ‘Buy’ rating on Eternal with an unchanged price target of ₹400, indicating a potential upside of about 85% from current levels.Market sentiment remains broadly positive on the stock, with 30 out of 33 analysts tracking Eternal recommending a ‘Buy’, while only three analysts have a ‘Sell’ rating.
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