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'Concerns Overdone': Eternal shares are down 15% in 2026 but Goldman sees stock at ₹350
'Concerns Overdone': Eternal shares are down 15% in 2026 but Goldman sees stock at ₹350
About this update from Eternal Limited
Shares of Eternal Ltd., the parent of Zomato and Blinkit, are trading 2% lower on Monday, April 13. The stock has risen in three of the last five trading sessions. Brokerage firm Goldman Sachs has a 'Buy' rating on Eternal, with a price target of ₹350 per share, implying a potential upside of nearly 46% from current levels. The brokerage believes concerns around Blinkit's total addressable market (TAM) may be overdone from a value perspective. However, it said that industry MTU (monthly transacting users) penetration, already at over 50% of the underlying TAM, could approach maturity over the next one to two years. On competition, Goldman Sachs expects Blinkit to continue gaining share from Swiggy, but acknowledged that growth may have been impacted in recent months due to heightened competition from new entrants as well as existing players. That said, the brokerage pushed back against the view that increased competition will limit margin expansion. It highlighted that the December 2025 quarter already showed signs of improvement, and believes there are sufficient levers to offset potential headwinds. Separately, JM Financial expects Blinkit's net order value (NOV) to grow in low double digits sequentially in Q4FY26, supported by mid-teen growth in order volumes, albeit slightly slower than the 14% growth seen in Q3. The brokerage also expects Blinkit's adjusted EBITDA margin to improve to 0.4% of NOV, compared to breakeven in the previous quarter. Among analysts tracking the stock, 30 out of 33 have a 'Buy' rating, while three recommend 'Sell'. Shares of Eternal ended Friday's session 1.09% higher at ₹240.48, though the stock is still down 15% so far this year.