Eternal Shares Price Rose Over 6%; JM Financial Maintains 'Buy' Rating - What's Ahead

The shares of food aggregator Eternal Ltd rose over 6% in trade on Tuesday, March 17, to hit an intra-day high of Rs 236.20 apiece.

This upswing in Eternal's share price comes after having fell over 25 times in the past 24 sessions, plummeting 25% during the same period.

Amid the Middle East crisis, brokerage firm JM Financial noted, "Global events are hard to predict, but we strongly believe Eternal – particularly its Blinkit business – shall emerge stronger once macro normalise."

"Investors with 12–18 months’ horizon should aggressively accumulate Eternal at these levels in our view as the stock is attractively priced at 35x Mar’28E PER," it noted.

Further, the brokerage firm kept Eternal's target price unchanged at Rs 400 on a "rollover to Mar’27E."

Meanwhile, the "QC market growth remains strong as the consumption shift continues from other retail channels such as traditional e-commerce, modern retail and neighbourhood kiranas."

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Is Blinkit Well Positioned To Handle Competitive Pressure?

In terms of supply chain, the quick e-commerce company has "2,027 dark stores" as on December last year, which is 2x more than its competitors, and a warehousing capacity of "6.2 million square feet."

The brokerage also noted that the Gurgaon-headquartered company has the largest transacting base of 23.6 million MTUs as on Q3FY26, additionally, it boasts of strong customer retention with an "order frequency of ~3.5x/month (>20% higher than Instamart) even without offering aggressive discounts, incentives or loyalty benefits."

"For 4QFY26E, we expect sequential NOV growth of 11% for Blinkit supported by mid-teens growth in order volumes—despite two fewer operating days than 3Q," it noted.

On the other hand, Flipkart-owned Minutes is adding nearly 100 dark stores per month while Amazon-owned Now is expanding its network at a pace of two stores/day, which has slowed the pace of Blinkit's growth.

On Tuesday's trading session, the shares of Eternal closed 5.70% higher at Rs 234.70 apiece