Shares of Eternal Ltd. surged nearly 4% on Wednesday, touching a fresh lifetime high as investor enthusiasm continued to build following the company's first-quarter earnings. The stock has rallied 15% since Monday, with a sharp 14% spike recorded on July 22, a day after the food delivery firm posted its results.
The rally has been fueled by stronger-than-expected revenue growth, narrowing losses in key verticals, and upbeat commentary from most brokerages. Eternal's performance in the June quarter showed operational momentum, particularly in its quick commerce and B2B supply businesses, Blinkit and Hyperpure.
The company reported a 23% quarter-on-quarter increase in revenue to Rs 7,167 crore, beating analyst expectations of Rs 6,624 crore. While net profit declined 36% sequentially to Rs 25 crore, missing consensus forecasts, the market appeared to focus on the company's improving unit economics and growth visibility.
Adjusted consolidated revenue rose 22% quarter-on-quarter and 70% year-on-year, driven by strong traction in Blinkit and Hyperpure. Eternal's B2C vertical now generates an annualised net order value of nearly $10 billion, with Blinkit contributing close to half of that figure.
Eternal Share Price Movement
The stock rose as much as 3.94% to Rs 313.95 apiece. It has pared gains to trade 3.34% higher at Rs 312.15 apiece, as of 11:26 a.m on July 24. This compares to a 0.51% decline in the NSE Nifty 50 benchmark index.
It has risen 39.67% in the last 12 months. Total traded volume so far in the day stood at 3.2 times its 30-day average. The relative strength index was at 79. Out of 32 analysts tracking the company, 28 maintain a 'buy' rating and four suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 1%
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