Mumbai, April 9 (Hindustan Herald): In a significant move reflecting its evolving business strategy, Zomato Ltd has officially rebranded itself as Eternal Ltd, effective today. This name change, authorized by the Ministry of Corporate Affairs (MCA) on March 20, 2025, aims to align the company’s identity with its diversified operations beyond food delivery.
The transition comes at a time when Zomato is experiencing notable fluctuations in its share prices. On April 9, 2025, the stock closed at ₹214.55, marking a 2.35% increase from its previous close of ₹209.63. Shares opened at ₹213.19 and peaked at ₹219.19 during the trading day, showcasing a bullish trend that has sparked renewed investor optimism.
Despite the positive movement in share prices, the broader market displayed mixed trends. Global cues from U.S. markets, particularly the tech-heavy NASDAQ, hinted at a cautious opening for Asian markets. Yet, Zomato's stock defied this trend, becoming one of the top gainers in the mid-cap tech and consumer internet segment.
Investor sentiment remains buoyed by the company's performance in its delivery segment, which has been bolstered by a focus on profitability and customer retention. Currently, Zomato boasts a price-to-earnings (P/E) ratio of 290.66 and a market capitalization of ₹1.95 lakh crore, which reflects a high valuation amidst ongoing growth narratives in India’s online food delivery sector.
In the past year, Zomato's stock has seen significant volatility, with a 52-week high of ₹304.70 and a low of ₹146.30. The recent rally brings the stock approximately 30% away from its peak, providing optimistic investors with hope for further gains as quarterly earnings reports loom.
Analysts are cautiously optimistic about Zomato’s future, noting that its fundamentals are aligning with strong delivery growth and increased average order values. Technical indicators suggest a potential short-term upside if the stock can maintain levels above ₹215–₹220 in the upcoming sessions. However, experts warn that any slowdown in user acquisition or disappointing earnings could derail this momentum.
In addition to the name change, Zomato's recent financial disclosures reveal a mixed performance. The company reported a 57% decrease in net profits for the third quarter of FY 2024-25, amounting to ₹59 crores. However, operating revenue surged by 64% to ₹5,405 crores compared to the same quarter last year. The food delivery segment alone saw a 21.5% increase in revenue, while its e-commerce delivery service, Blinkit, boasted a remarkable 117% gain in revenue.
The rebranding to Eternal Ltd is not just a cosmetic change; it reflects the company’s strategic shift to position itself as a multi-vertical business. Zomato has expanded its operations to include Blinkit for quick commerce, Hyperpure for B2B supplies, and District for dining services. The company reassures stakeholders that this name change will not affect its consumer-facing brand identities or applications.
As part of this transition, Zomato is in the process of moving its corporate website from zomato.com to eternal.com, further solidifying its new identity in the market.
Market experts have varied opinions on the future trajectory of Eternal Ltd’s stock. Some analysts on platforms like Trendlyne and TradingView strongly recommend buying shares, while others suggest a more cautious approach, especially given the stock's elevated P/E ratio. According to recent estimates, the average target for Eternal Ltd shares is set at ₹271.33, indicating an upside potential of 27.77% from the last price of ₹212.35.
As of April 8, 2025, the stock had also seen a 2% surge, with shares opening at ₹213.19, higher than the previous closing price of ₹209.75. The stock recorded a day high of ₹219.19 and a low of ₹210.81. However, the current market capitalization was reported at ₹2,07,725 crores, with upper and lower circuit limits set at ₹230.59 and ₹188.66, respectively.
Despite the challenges, including a 57% drop in net profits, the company’s robust operating revenue and strategic initiatives signal a commitment to long-term growth. As Eternal Ltd navigates this transitional phase, investors and analysts alike will be watching closely for signs of recovery and sustained performance.
In the wake of the rebranding, shareholders are advised to remain vigilant and consider the implications of market trends and company performance metrics. Analysts like Anshul Jain from Lakshmishree Investment and Securities caution that the stock must hold its crucial support zone around ₹207–₹210 to avoid further declines. A breach below this level could lead to deeper losses, while a decisive close above ₹220 could signal a new upward momentum.
As the market reacts to Eternal Ltd’s new identity and strategic direction, the coming weeks will be pivotal for the company’s stock performance and overall market sentiment. Investors are encouraged to stay informed and consult with financial experts before making any investment decisions.
