Shares of Eternal Ltd (formerly Zomato) hit their record high on Thursday amid a rally in the broader market. Eternal stock rose 2% to a high of Rs 334.95 against the previous close of Rs 328.20 on BSE. A total of 7.64 lakh shares of Eternal changed hands amounting to a turnover of Rs 25.41 crore on BSE. The market cap of the firm climbed to Rs 3.22 lakh crore in the current session. The firm has zero debt on its books.
Goldman Sachs has a buy call on the stock with a price target of Rs 360.
The global brokerage finds Blinkit’s growth momentum strong. It expects the firm to double the store count in 2-3 years and fuel expansion. The competitive environment for the firm is stable. Blinkit’s transition margin expansion of 240 bps is expected in the next two quarters.
Motilal Oswal has retained its Buy call on Eternal with a target price of Rs 420. The brokerage continues to see structural tailwinds and upside to earnings estimates for the company.
The brokerage believes food delivery and quick commerce industry has faced multiple headwinds over the past few months.
“Food delivery growth slowed due to weak consumption and macro pressures, while quick commerce (QC) profitability came under strain from heightened competition, accelerated dark store rollouts, and elevated customer acquisition costs. We now believe the cycle is turning,” said Motilal Oswal.
Sumeet Bagadia from Choice Broking has a price target of Rs 362. A decisive close above Rs 325 level could act as a catalyst for the next leg of the rally. The analyst expects near-term upside potential toward Rs 362, underscoring the stock’s strong bullish momentum.
“Eternal is exhibiting a strong confluence of bullish signals. The price is well-supported above its 20, 50, 100, and 200-day Exponential Moving Averages, all trending upward, confirming the strength of the prevailing trend. On the downside, immediate support lies at Rs 300, which may serve as an attractive accumulation zone in case of minor pullbacks. The Relative Strength Index (RSI) is currently at 67.46 and trending upward, indicating strong momentum, though approaching overbought territory,” said Eternal.
The multibagger stock has a beta of 1.3, indicating high volatility during a year.
In terms ofd technicals, the RSI of the stock stands at 62, signalling the stock is neither oversold nor overbought on charts.
The stock of the online food delivery firm is bullish in the short as well as long term as the scrip is higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
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