On April 11, 2025, shares of Eternal Ltd., formerly known as Zomato, demonstrated a notable recovery, rising by 3.07% to reach ₹217.89 by mid-morning. This increase follows a week of positive momentum, with shares opening at ₹216, marking a substantial rise from the previous session's closing price of ₹211.39. The stock's performance has been buoyed by a combination of factors, including a rebranding initiative and the initiation of liquidation for its Dutch subsidiary, Zomato Netherlands BV.
Investors have shown renewed interest in the food delivery sector, which is experiencing a surge in demand. The stock displayed a classic U-shaped intraday pattern, showcasing an initial dip before rebounding to maintain an upward trajectory throughout the trading session. Analysts have noted that the positive sentiment in the consumer tech sector is lifting the broader market, contributing to the bullish trend in Eternal's share price.
According to reports, the current market capitalization of Eternal is approximately ₹1.90 lakh crore, with a price-to-earnings (P/E) ratio exceeding 290. The stock's 52-week high stands at ₹304.70, while the 52-week low is recorded at ₹146.30. Despite its high valuation, the company remains a significant player in the digital commerce and delivery ecosystem, bolstered by strong brand equity.
Market analysts are cautiously optimistic about Eternal's future, particularly as the company prepares to announce its Q4 FY2025 financial results on May 13, 2025. The third quarter financial reports revealed a 64% increase in revenues, totaling ₹5,405 crore, although net profits saw a decline of 57%, dropping to ₹59 crore compared to ₹138 crore during the same period last year. Eternal's subsidiary, Blinkit, also reported losses of ₹89 crore, down from ₹103 crore in the previous year.
As the market continues to react to these developments, traders are eyeing the ₹220 mark as the next immediate resistance level, with potential for a breakout towards ₹225. Long-term investors are advised to monitor earnings, user growth, and sustainable profitability in emerging verticals like Blinkit as they assess their investment strategies.
In a broader context, the competitive landscape for food delivery services remains intense. Both Eternal and its rival, Swiggy, have seen fluctuating share prices amid market volatility. On April 11, shares of Swiggy gained 2%, trading at ₹335.80, while analysts have issued mixed ratings on the stock. HSBC recently downgraded Swiggy's price target from ₹460 to ₹385, reflecting the challenges faced by the quick commerce industry.
Among analysts tracking Zomato, 24 out of 30 have issued a 'Buy' rating, while two have a 'Hold' rating, and four recommend selling. This positive outlook is indicative of the growing confidence in Eternal's strategies and the potential for recovery in the food delivery market.
The recent liquidation of Zomato Netherlands is part of a larger restructuring effort aimed at streamlining operations and focusing on profitable segments. This decision has contributed to increased trade volumes and rising share prices, as investors react favorably to the company's strategic pivots.
As the company navigates through scaling challenges and monetization milestones, the market will be closely watching how Eternal positions itself in the evolving digital commerce landscape. The food delivery sector is poised for growth, and Eternal’s ability to capitalize on this trend will be crucial for its long-term success.
In summary, Eternal Ltd.'s recent performance reflects a blend of strategic management, positive market sentiment, and a responsive approach to emerging challenges. With the upcoming financial results and ongoing restructuring efforts, the company is setting the stage for potential growth in a competitive environment.
