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Buy Eternal; target of Rs 360: Motilal Oswal
Buy Eternal; target of Rs 360: Motilal Oswal
About this update from Eternal Limited
Motilal Oswal's research report on Eternalternal reported 3QFY26 net revenue of INR163b, up 20.7% QoQ, above our estimate of 11.8% QoQ growth. Food delivery (FD) NOV came in at INR98.4b, above our est. of INR94.2b. Blinkit NOV came in at INR133b (up 120% YoY) vs. our est. of INR133.6b. For FD, adjusted EBITDA as a % of NOV margin was up 10bp QoQ at 5.4% vs. our estimate of 5.3%. Blinkit reported a contribution margin of 5.5% (4.6% in 2Q). Adj. EBITDA margin was at breakeven, above our expectation of -1.3%.OutlookWe reduce our FY27/FY28 estimates by ~15%, factoring in intense competition, continued dark store expansion, and branding and marketing investments in QC. Eternal should report a PAT margin of 1.6%/2.0% in FY27/28E. Our TP of INR360 implies a 27% upside from the current level. We reiterate our BUY rating on the stock.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_Motilal Oswal