Eternal shares jump 5.5%, extend gains to 9% in two days: Here are the triggers

Eternal shares jump 5.5%, extend gains to 9% in two days: Here are the triggers

Shares of foodtech and quick commerce company Eternal Ltd, parent of Zomato, rose 5.5% on June 5 amid multiple positive triggers, thus extending its two-day gain to 9%. The stock of the company was the top gainer among Nifty 50 stocks.

At 12:28 pm on June 5, Eternal's shares on NSE were trading 5.4% higher at Rs 259 apiece. The 52-week low of the stock is Rs 179 and 52-week high is Rs 304.7. The market capitalisation of the stock is Rs 2.5 lakh crore.

So far on Thursday, over 7.2 crore shares of the company have changed hands on the NSE, sharply higher than over 3.4 crore shares traded during the same period on Wednesday.

Recently, Morgan Stanley took a bullish stance on Eternal, citing the company’s leadership in both food delivery and quick commerce, efficient cost structure, and a strong balance sheet that reduces the risk of further equity dilution.

The brokerage has maintained its price target at Rs 320, implying up to 23% upside from current levels, and sees a potential floor at Rs 200–220, offering what it calls a compelling risk-reward profile.

A key driver behind the bullish stance is the rising addressable market in quick commerce. With faster customer additions and an expanding city footprint, Morgan Stanley now estimates India’s QC market will grow to $57 billion by 2030, sharply higher than its earlier forecast of $42 billion. As a result, it has raised Eternal’s quick commerce gross order value estimates for FY26–28 by 9–11%.

Though the segment continues to face heavy competition, Morgan Stanley believes losses will peak this quarter, with margin recovery gaining pace from FY26 onward. In parallel, the food delivery business is also expected to deliver improved margins, aided by better monetisation and fixed cost absorption.

Meanwhile, a CLSA report showed that Blinkit is now within striking distance of Zomato’s food delivery app in weekly active users, signalling a major shift in India’s online shopping habits. As of May 26, Blinkit recorded 30.1 million weekly active users, just shy of Zomato’s 30.7 million, and comfortably ahead of Swiggy’s combined app user base.

This comes at a time when quick commerce is growing at a scorching pace, fuelled by rising consumer demand and aggressive expansion by players like Zepto and Swiggy’s Instamart. What started as a convenience-led experiment is fast becoming a default choice for grocery, snacks, personal care, and even fashion in some cities.

According to Sensor Tower data analysed by CLSA, Blinkit, already the category leader, has only widened its lead this year. The gap between Blinkit and its closest peer has grown from 1.79 million WAUs in early January to 7.7 million by late May, its highest ever, the report said.