₹7,200 Cr Flows, ₹72K Cr Valuation – Eternal (Zomato) in Focus, 6 Points

Mumbai

1. Mutual Funds’ Massive Bet on Eternal Ltd (Formerly known as Zomato)

• ₹7,200 crore worth of shares bought by mutual funds (MFs) in August 2025.

• 22.9 crore additional shares acquired, raising MF holding significantly.

• MFs now own 225.60 crore shares, up from 202.70 crore in July (Nuvama data).

• Current holding valued at ₹72,665 crore (at intraday price of ₹322.10/share).

2. Steady Rise in Institutional Ownership

• MF stake growth over last four quarters:

  • 21.6% (June 2025) vs 19.4% (March 2025).

  • 16.5% (Dec 2024) vs 15.5% (Sept 2024).

• Institutional confidence reflects stronger fundamentals and growth outlook.

3. Stock Performance Snapshot

• Eternal stock has rallied 59% in last six months.

• Price momentum continues despite rising competition in quick commerce (QCom).

• Intraday price: ₹322.10; Brokerages set targets of ₹330 (Emkay) and ₹420 (MOFSL).

4. Competition Heats Up in Quick Commerce (QCom)

• Amazon Now expands to Mumbai after Delhi & Bengaluru.

• Infrastructure gap:

  • Amazon: 100 dark stores.

  • Blinkit: 1,544 stores.

  • Swiggy Instamart: 1,062 stores.

• Analysts note Amazon’s capital strength but highlight incumbents’ customer recall advantage.

5. Brokerage Views & Target Prices

Emkay Global:

• Believes incumbents (Blinkit/Eternal ecosystem) are better placed than Amazon.

• Expects market expansion first, consolidation later.

• Rating: Buy | Target Price: ₹330.

Motilal Oswal (MOFSL):

• Sees food delivery growth recovery:

  • Raised FY26–FY27 estimates to 21–23% growth (from 19–20%).

  • Values Eternal at 35x FY27E EBITDA.

• Adjusted profitability outlook for Blinkit’s QCom business.

• Rating: Buy | Target Price: ₹420.

6. Risks & Opportunities

• Risks: Heightened QCom competition, rising customer acquisition costs, and profitability pressures.

• Opportunities: Long-term growth from food delivery, strong MF backing, and industry consolidation driving margins.

✅ Conclusion: Eternal Ltd has attracted ₹7,200 crore MF inflows, with stock up 59% in 6 months and a market valuation of ₹72,665 crore. With brokerages setting ₹330–₹420 targets, the stock remains a strong institutional favorite in India’s food delivery & QCom space.

Disclaimer: This article is for informational purposes only and not investment advice. The Profit India is not responsible for investment decisions based on this content.