Eternal shares took centre stage on Dalal Street on Thursday amid market buzz about a likely block deal in the food delivery platform’s stock. The Eternal stock rose 1.0 per cent for the day, ending at Rs 301.8 apiece on BSE, and was among the top three contributors to the gains in main indices. At the end of trade, 3.04 crore Eternal shares changed hands for the day on BSE, translating to 18.56 times more volumes than the daily average recorded in the past two weeks, provisional exchange data showed.
On NSE, the stock ended 1.5 per cent higher at Rs 303.2 apiece. The value of the traded equity stood at Rs 11,475.1 crore, 3.9 per cent of the company’s mcap, according to exchange data.
In a separate development, Eternal said it had recieved an order from the Lucknow office of the UP state authorities demanding GST worth Rs 67.25 lakh with interest and a penalty of the same amount over short payments of “output tax and excess availment of input tax credit with interest and penalty”.
According to Eternal, it has a strong case on the merits and is not expecting any financial impact on it.
How analysts view Eternal shares
Analysts have mixed views on Eternal citing potential for long-term growth but expensive valuations.
For the quarter ended June 30, Eternal reported a 90 per cent fall in consolidated net profit to Rs 25 crore, though its revenue grew 70.4 per cent to Rs 7,167 crore driven by robust expansion across sectors.
Geojit has ‘hold’ rating on Eternal with Rs 337 target
Last month, Geojit revised its rating on Eternal to ‘hold’ from ‘buy’ while revising its target price to Rs 337 from Rs 254.
At Thursday’s closing price, the brokerage’s target indicates a potential upside of 11.7 per cent in Eternal shares.
According to Geojit, Eternal is poised for long-term growth and improved profitability, driven by its strong market position and growth prospects in the quick commerce business (QCB), and although the industry outlook remains competitive, its strategy and long-term growth objectives are expected to drive future growth.
“However, the stock’s significant run-up in price and rich valuations limit the upside potential from current levels,” wrote analysts at the brokerage in a research report dated July 29.
Eternal shares vs Nifty 50
As of Thursday, Eternal shares have risen 9.7 per cent on a year-to-date basis, outperforming a 3.6 per cent rise in the Nifty50.
