Perpetual stock price target: Shares of Eternal Ltd, the parent company of Zomato and Blinkit, continue to rise. The stock rose 4% on Thursday, bringing its total gain from the March low to 34%. The confidence of various brokerage companies still exists in this stock. 27 out of 29 analysts have ‘buy’, ‘outperform’ or ‘overweight’ ratings. Apart from this, the average price target indicates an upside of more than 20% from the current price.
The company’s stock was trading 1.31% or Rs 3.70 higher at Rs 287.10 on the BSE and 1.05% or Rs 3 higher at Rs 287.40 on the NSE as of 3:22 pm.
Perpetual stock price target
After the first quarter results, CLSA’s Aditya Soman gave the highest target of Rs 506. This is about 75% higher than the current price. Vivek Maheshwari of Jefferies set a target of Rs 415, and Gaurav Malhotra of Axis Capital set a target of Rs 405. JM Financial, Emkay Global and Elara Securities have set a target of Rs 400.
Zomato’s food delivery business surprised
According to ICICI Securities, the 20% year-on-year increase in net order value (NOV) in the food delivery business was a positive surprise. Despite investing in growth, the steady improvement in profits shows the strength of the business. The brokerage maintained a ‘buy’ rating with a target of Rs 360.
Nomura India has also increased Eternal’s target from Rs 340 to Rs 350 keeping in mind improved profitability despite stiff competition in flash trade. The brokerage expects 18-21% YoY growth in November for Zomato in FY27-28.
Bet on Blinkit’s growth, too
MOFSL believes that Eternal’s business model is now established and that competition is more predictable than ever before. Management’s long-term goal of 60% growth in November and $1 billion EBITDA by FY29 also looks more achievable for the brokerage.
JM Financial raised Blinkit’s estimates for fiscal year November 27-29 by 1-9%. However, there has been some decline in profitability estimates in light of the increase in minimum wages and higher prices due to network expansion.
Ilara believes valuation re-ratings may remain limited in the near term, but continued earnings outperformance could create further headwinds for the stock in the medium term.
