Eternal, the parent company of Zomato and Blinkit, saw its shares surge nearly 15 percent to hit a record high of Rs 311.25 on the NSE on July 22, extending a two-day rally that lifted the stock by more than 20 percent.
The sharp uptick, following a strong June quarter earnings report, added around Rs 40,000 crore to the company’s market capitalisation over the two sessions.
Deepinder Goyal Net Worth Surges
This rally translated into a significant wealth gain for Eternal CEO Deepinder Goyal, who holds 36,94,71,500 shares in the company. At the time of the earnings announcement, the stock stood at Rs 266. With the stock touching a high of Rs 311 in today's session, Goyal's wealth likely rose by over Rs 1,667 crore.
Eternal shares settled at Rs 299.75 on the NSE, up 10.32 percent for the day. At this price, the value of Goyal’s stake stood at Rs 11,071.86 crore, as of July 22.
With the recent rise in the stock, Eternal’s market capitalisation crossed the Rs 3 lakh crore mark, placing it ahead of over 20 Nifty 50 constituents, including Wipro, Tata Motors, JSW Steel, Nestle India, Coal India, Bajaj Auto, Asian Paints, Eicher Motors, Tech Mahindra and Cipla.
The stock rally was supported by strong trading volumes, with nearly 27 crore shares changing hands on the NSE, generating a turnover of Rs 7,988.26 crore. The delivery volume was higher than the five-day average. The stock is trading above its 5 to 20 day moving averages.
"Eternal once again surprised us positively on Blinkit. This time though, the surprise was more on management commentary than the reported numbers, as it was quite a contrast to the cautious tone post 4QFY25 results," JM Financial Institutional Securities said in a note.
In the quarter ended June, Eternal reported revenue from operations of Rs 7,167 crore, up from Rs 4,206 crore in the same period last year. For the first time, the net order value (NOV) of the company’s quick commerce business exceeded that of food delivery for the full quarter.
Blinkit, which delivers everything from daily essentials to electronics in under 10 minutes, continues to lead the quick commerce space despite rising competition from BigBasket, Flipkart, Swiggy and Amazon.
"We overestimated the competitive threat," analysts at Jefferies said, citing Blinkit’s growth, improving margins, and higher growth expectations going ahead.
Eternal posted a consolidated net profit of Rs 25 crore for the June quarter. This was sharply lower than the Rs 253 crore reported in the same quarter last year, as investments in quick commerce and going-out verticals impacted profitability.
The company, which rebranded itself as Eternal in March, said the results are not comparable with the previous year’s quarter due to the acquisition of Orbgen Technologies Pvt Ltd and Wasteland Entertainment Pvt Ltd from One 97 Communications in August 2024. These firms operate the movie ticketing and events businesses, respectively.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
