Business
Buy Eternal; target of Rs 360: ICICI Securities
Buy Eternal; target of Rs 360: ICICI Securities
About this update from Eternal Limited
ICICI Securities's research report on EternalQuick commerce (QC) profitability improvement was significantly ahead of estimate (adj. EBITDA INR 40mn vs. consensus INR -1.3bn). We think this was aided by the move to inventory model. Food delivery (FD) growth also beat estimate (16.6% YoY NOV growth vs. consensus at 13.5% YoY). We reckon Zomato has managed to stem market share losses in food delivery in Q3. Hyperpure breakeven was another positive surprise. Management also called out a path to profitability for ‘Going Out’ in next 4-6 quarters. The recently started ‘Bistro’ vertical is showing early signs of traction. While Deepinder Goyal’s decision to step down as Group CEO was not envisaged, we think Albinder Dhindsa is a worthy successor. Also, Mr. Goyal’s decision to return unvested ESOPs (> INR 10bn) sets a very high bar for corporate governance. Upgrade to BUY.OutlookWe upgrade Eternal to BUY (from Add) with a three-stage DCF-based unchanged target price of INR 360.For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Eternal_22012026_ICICI Securities