Eternal Shares Surge 4% to Top Gainer Status Amid Value Buying, Analysts Forecast Up to 80% Upside Potential

Eternal Ltd Emerges as Top Market Gainer Amid Value Buying

On March 17, Eternal Ltd, the parent company of Zomato and Blinkit, surged as the top market gainer, driven by value buying and a brokerage's positive outlook. The stock climbed over 4% on the day, reversing its 40% decline from recent highs.

Eternal Ltd's shares on the BSE traded 4.4% higher at Rs 231.75 apiece at 11 am on March 17. The stock's recovery is attributed to investors perceiving value in the stock despite concerns around leadership changes and high competitive intensity in the quick commerce (QC) segment.

JM Financial notes that while global events, such as the AI and Middle East conflict, have exacerbated the situation, Eternal Ltd and its Blinkit business are likely to emerge stronger once macroeconomic conditions normalize. The brokerage expects Blinkit's net order value (NOV) to expand by low double-digit QoQ in 4QFY26E, driven by mid-teens order volume growth.

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Kotak Securities also weighed in on the situation, noting that LPG supply disruptions have hit restaurants, potentially lowering food delivery volumes. However, the brokerage added that delivery costs have been stable for now, and Swiggy faces more significant supply challenges.

Swiggy shares traded over 2% higher at Rs 291.25 apiece on March 17. JM Financial maintained its NOV growth forecast of 18% YoY for Zomato in 4QFY26E, despite concerns around supply-side disruptions linked to gas availability issues.

The brokerage advised investors with a 12-18 month horizon to "aggressively accumulate" Eternal Ltd at current levels, citing the stock's attractive price-to-earnings ratio (PER) of 35x Mar'28E. JM Financial maintained its target price of Rs 400 on a rollover to Mar'27E, despite cutting its target NTM PE to 65x (from 75x) factoring in global macros and competitive risks.