Zomato Parent Eternal: A Medium-Term Bet? SEBI RAs See Nearly 35% Upside Potential After Q4 Profit Slump

Zomato parent Eternal's shares rose 3% on Friday, recouping early losses, despite reporting a sharp 78% year-on-year (YoY) decline in net profit for the March quarter. 

The company, which rebranded itself from Zomato to Eternal in March, posted a revenue jump of 64% YoY to ₹5,833 crore. 

The management flagged intensifying competition and announced the discontinuation of Zomato Quick and Everyday due to unviable unit economics; brokerages remained constructive.

Citi retained its 'Buy' rating and raised its target price to ₹290, implying a potential upside of over 25%. 

JM Financial also reaffirmed its 'Buy' call with a ₹280 target, suggesting long-term investors look past near-term volatility — particularly around Blinkit's expansion strategy. 

Retail sentiment turned "extremely bullish" a day ago on Stocktwits amid high message volume. 

SEBI-registered analysts had flagged Eternal's potential earlier this week.

Gaurav Puri maintains a constructive outlook on Eternal, setting targets of ₹252, ₹270, and ₹300, with a stop loss at ₹202 and a six-month investment horizon. 

From a technical perspective, he observes that the stock's Relative Strength Index (RSI) is bullish at around 58, indicating positive momentum.

On the fundamental front, Puri points out that Eternal is virtually debt-free, which enhances its financial stability and reduces risk.

Krishna Pathak also views Eternal as a compelling medium-term investment opportunity, recommending an entry price between ₹225 and ₹230, with defined targets at ₹291, ₹306, and ₹322, and a stop loss at ₹199. 

He highlights the stock's rebound from the ₹200 support zone and its trading above its 20- and 50-day exponential moving averages as technical confirmation of an uptrend.

Pathak also cites Eternal's recent inclusion in the Nifty 50 index as a major positive trigger, likely to bring institutional flows from index funds and exchange-traded funds (ETFs), driving visibility and momentum.

Meanwhile, Adarsh Nimborkar noted that a sustained breakout above resistance at ₹243.4 could trigger a rally toward ₹305. The broader trend for Eternal remains positive as long as the stock holds above ₹203. 

He notes that any dips to the ₹227 or ₹203 levels may present attractive accumulation opportunities for positional traders, as these zones are expected to act as strong support. 

Eternal shares fell 14% year-to-date (YTD). 

For updates and corrections, email newsroom[at]stocktwits[dot]com.