Up 40% in a year; this Nifty50 company saw large deal in early deals: Check details

Shares of the food aggregator Eternal in Wednesday’s traded on a muted note. In early trade, the stock gained up to Rs 260, gaining 1.68 per cent per share on the BSE. On the NSE, the stock was up 0.48 per cent or Rs 1.22 at Rs 257.34.

In the pre-opening session, 61 lakh shares changed hands in the counter in multiple transactions. In the past month, the stock has gained over 7 per cent.

As per the NSE data, as of 10:56, traded volume in the counter is at 147.34 lakhs. 

Foreign brokerage continues to be bullish on food delivery company

Earlier this month, Morgan Stanley on Eternal has maintained its overweight stance on the stock, keeping the target at Rs 320. The new target suggest a 25 per cent potential upside from the last close. 

The foreign brokerage picked Zomato as its top pick within the segment as the company holds a leadership position in the food delivery and quick commerce space.

The brokerage has also pointed out that the company’s balance sheet is improving and chances of equity dilution are lesser. 

In  addition, the brokerage mentioned that at the current price, the stock offers a good risk-reward with support placed between Rs 200-220 per share.

Eternal Q4FY25 results

Nifty50 new entrant reported 78 per cent fall in consolidated net profit to Rs 39 crore even as revenue from operations soared to Rs 5,833 crore in Q4 FY25 over Q4 FY24. 

Total operating expenditure rose by 65.7 per cent on-year to Rs 5761 crore during the period under review. Consolidated adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 15 per cent on-year  to Rs 165 crore in Q4 FY25.

The food and grocery delivery company’s profitability declined substantially amid mounting losses from the company’s quick commerce business.

The company stated that it will continue chasing market share aggressively in quick commerce, ensuring that near-term profit goals don’t come in the way of long-term growth.