Zomato's New Moniker 'Eternal' To Come Into Effect On April 9

Food delivery giant Zomato Ltd's approved change of title to Eternal is set to come into effect from April 9, as per an exchange filing on Thursday.

Despite this corporate shift, the popular Zomato food delivery app and brand will retain its familiar name.

The company's decision to adopt the "Eternal" moniker reflects its expanding business portfolio. Under this new umbrella, Eternal will house Zomato's four core verticals: its flagship food delivery service, the quick-commerce platform Blinkit, the B2B supplies business Hyperpure, and its dining-out platform, District.

In a separate development, Bank of America has downgraded its ratings for both Zomato and Swiggy. BofA has revised Zomato's rating to "neutral" from "buy", lowering its target price to Rs 250 from Rs 300.

While BofA analysts remain optimistic about the companies' medium-term prospects, the downgrades are attributed to concerns about slowing growth and the gradual pace of margin improvement in the food delivery sector.

Additionally, the narrative surrounding quick commerce has shifted, with analysts now highlighting "rising losses and a highly competitive market", moving away from the previously held view of "higher growth and improving unit economics."

Shares of Zomato closed 0.53% lower at Rs 210.90 apiece on the National Stock Exchange, compared to a 0.35% decline in the benchmark Nifty. The share price has risen 18.28% in the last 12 months.

Twenty-five out of the 30 analysts tracking the company have a 'buy' rating on the stock, two recommend 'hold' and four suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 33.3%.