Risk factor
Good trading liquidity
Profitability factor
Greatly overvalued vs peers
About
Eternal Limited, an enterprise founded in Gurugram, India, in 2008 (and known as Zomato Limited until its rebranding in March 2025), operates as a global provider of e-commerce platform solutions. The company serves a diverse array of partners, including restaurants, quick commerce retailers, delivery service providers, theaters, and event organizers, connecting them with customers both in India and internationally. Its business operations are categorized into four primary segments: 1. India Food Ordering and Delivery: This division leverages its B2C Zomato brand to facilitate online food ordering by seamlessly linking end-users with restaurant establishments and independent delivery partners. Services within this segment also extend to food rescue initiatives, "food on train" options, a corporate food expense management system for streamlining reimbursements, scheduled delivery functionalities, and group ordering capabilities. 2. Hyperpure Supplies: Under the Hyperpure brand, this B2B segment specializes in supplying essential, value-added food ingredients and kitchen products to restaurants and various other business clients. It further provides comprehensive 4PL warehousing and supply chain management services. 3. Quick Commerce: The company's Blinkit brand leads its quick commerce endeavors, offering on-demand delivery across a broad spectrum of product categories. These include daily essentials, electronics, beauty and personal care items, home decor, toys, general merchandise, musical instruments, gym equipment, and apparel. This segment also supports marketplace sellers with vital warehousing and related logistical services. 4. Going Out: Operating via the District app, this segment caters to entertainment and leisure. It offers ticketing solutions for dining experiences, movies, sporting events, and live performances, alongside providing services for event organization, production, and overall management. In addition to these core offerings, Eternal Limited also engages in various ancillary services, such as payment aggregation and gateway solutions, financing and investment activities, trading, advertising platforms, and subscription models, while also managing internet portals.
Company Valuation
Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EBITD.
Target Price
The average target price of ETERNAL.NS is 341 and suggests 19.5% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to