Eternal Shares Surges 3% On Likely MSCI Inclusion

Shares of Eternal Ltd. rose to 3% on Tuesday with the stock trading at Rs 294.63 apiece.

Eternal share price rise came after the company released its latest shareholding pattern yesterday evening. Currently, Eternal holds only half weight in the MSCI index due to previously limited foreign room.

However, the latest data shows that foreign room has now crossed the 25% threshold, making the stock eligible for full MSCI weight. Analysts anticipate that this change will be reflected in MSCI’s February review.

If implemented, the adjustment could trigger passive inflows of $390 million approximately. This might help strengthen the stock’s position further in global portfolios.

Eternal is the parent entity of Zomato and Blinkit. Recently, they also received two Goods and Services Tax (GST) demand orders amounting to over Rs 27.56 crore, including interest and penalty.

The orders passed by the Additional Commissioner of State Tax (Appeals), West Bengal, have been received with respect to short payment of output tax for the period between April 2020 and March 2022.

The scrip rose as much as 4.22% to Rs 297 apiece during the day. This compares to a 0.03% decline in the NSE Nifty 50 Index.

Total traded volume so far in the day stood at 26.32 times its 30-day average. The relative strength index was at 33.57.

Out of 33 analysts tracking the company, 29 maintain a 'buy' rating, and none are maintaining a "hold" and four are mainting a "sell" rating, according to Bloomberg data. The average 12-month consensus price target of Rs 379.16 implies an upside of 29.5%.