1 hour ago
HomeMarket NewsEternal shares should be 'aggressively accumulated' for 12-18-month horizon, says JM Financial
Eternal shares have corrected nearly 40% from its recent highs. Brokerage firm said the stock now appears attractively valued at around 35x its estimated FY28 earnings.
By Meghna Sen March 17, 2026, 2:29:25 PM IST (Published)
2 Min Read
Shares of Eternal Ltd, the parent of Zomato and Blinkit, are trading about 6% higher on Tuesday, March 17. The stock has corrected nearly 40% from its recent highs.
Brokerage firm JM Financial believes this presents a buying opportunity for investors with a 12-18 month horizon and recommends accumulating the stock at current levels.
The brokerage said the stock now appears attractively valued at around 35x its estimated FY28 earnings.
It said that the initial phase of the correction was driven by concerns around leadership changes and rising competition in the quick commerce segment.
More recently, additional pressures from potential new competition in food delivery and global macro uncertainties, including AI-related disruptions and the Middle East conflict, have weighed on sentiment.
Despite these concerns, JM Financial expects Eternal, particularly its Blinkit business, to emerge stronger once macro conditions stabilise.
For Q4FY26, Blinkit’s net order value (NOV) is expected to grow in low double digits sequentially, supported by mid-teen growth in order volumes, though slightly slower than the 14% growth seen in Q3.
The brokerage also expects an improvement in Blinkit’s adjusted EBITDA margin to 0.4% of NOV, compared to breakeven in the previous quarter.
On the food delivery business, concerns around supply-side disruptions due to gas availability issues are seen as overstated, as demand can shift to operational restaurants unless there is a widespread shutdown.
JM Financial has retained its ‘Buy’ rating on Eternal with an unchanged price target of ₹400, implying an upside of about 85% from current levels.
Among analysts tracking the stock, 30 out of 33 have a ‘Buy’ rating, while three recommend ‘Sell’.
Shares of Eternal were trading 6.11% higher at ₹235.58 on Tuesday. The stock is down about 17% so far in 2026.
Note To Readers
Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
