The stock of Eternal, the parent of food delivery apps Zomato and Blinkit, surged up to 4 percent on the bourses on Tuesday after brokerage firm JM Financial noted a strong upside potential in the stock.
The stock, which has ended at Rs 222.05 apiece on Monday, opened marginally higher on Tuesday at Rs 222.75. However, it later climbed over 4.5 percent on the bourses to hit its day’s high of Rs 232.10.
The rally came in the stock after the Mumbai-headquartered financial services major JM Financial noted that the stock could have a potential of rising up to 80 percent from the current levels.
The brokerage, however, pointed out the reasons of the stocks recent selloff by the investors. It cited the leadership change and competition as the two major reasons behind the stock performance in recent months. But it also expressed confidence that the stock may rebound once the macroeconomic factors normalise.
“While the initial leg of correction could be attributed to investor concerns around leadership changes and high competitive intensity in QC, the recent news flow about new competition in FD and global macros (AI and Middle East conflict) has made it worse. To be sure, global events are hard to predict, but we strongly believe Eternal – particularly its Blinkit business – shall emerge stronger once macro normalise,” said JM Financial in the note.
Zomato’s founder Deepinder Goyal had stepped down as the group chief executive officer in January 2026. He handed over the reins to Albinder Dhindsa, the founder of Blinkit. The quick commerce app was acquired by Zomato in 2022.
This sudden stepping down of Goyal had sparked concerns among the investors about leadership instability.
More recently, Eternal’s food delivery arm Zomato was hit by the LPG crisis due to the war in West Asia which choked natural gas supplies to India. This has led to the shut down of restaurants and eateries, impacting the business of Zomato.
