Eternal Shares In Focus As Motilal Oswal Sees Up To 34% Upside; Should You Buy? Check Target Price

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Motilal Oswal Report

Domestic brokerage firm Motilal Oswal has reiterated a 'Buy' call on Eternal Ltd. and has set a target price of Rs 380, implying a 34% upside from the current level.

The brokerage remains bullish on Zomato's food delivery business' improving trajectory, and believes that Blinkit remains a generational opportunity in hyperlocal commerce despite near-term growth normalisation.

Motilal Oswal continues to view FD as a stable duopoly with balanced market shares between Eternal and Swiggy and models ~20% gross order value growth over FY27–28 and assign a 35x EV/Ebitda multiple to the FD business, reflecting its steady margin trajectory and high user stickiness.

While the brokerage estimates that quick commerce growth is moderating at ~70% in FY27, it sees this as a normalisation, with improving unit economics and a clearer path to profitability.

Motilal Oswal factors in gradual margin expansion, led by store maturity and operating leverage.

The company has guided for $1 billion in adjusted Ebitda for the consolidated business by FY29E.

The estimates imply ~$500 million for quick commerce and ~425 million from FD, the balance being contributed by going out/district/hyperpure.

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