Can Eternal share price touch ₹375 despite its 1,460 PE ratio?

Synopsis:- A global brokerage sees 32 percent upside with a target of ₹375, citing low ~5 percent quick-commerce penetration and leadership with 45 percent market share. Expansion to 2,100 stores and expected EBITDA breakeven by early FY27 are key catalysts, though valuation remains demanding at 1,460x P/E.

The Indian e-retail food delivery sector is booming, driven by rapid urbanisation and increasing smartphone usage. Valued at around USD 45 billion in 2024, it is expected to grow at a CAGR of over 20 percent, potentially reaching close to USD 140 billion by 2030. Increasing demand for convenience, diverse cuisines, and expanding tier 2 and 3 city penetration fuel this surge.

With a market capitalisation of Rs 2,70,837.09 crore, the shares of Eternal Ltd were trading at Rs 280.65 per share, decreasing around 1.32 percent as compared to the previous closing price of Rs 284.40 apiece.

Brokerage Recommendation

Global brokerage Goldman Sachs has initiated a positive view on the stock, assigning a ‘Buy’ rating with a target price of  Rs 375. This implies a potential upside of about 32 percent from the recent closing price of  Rs 284, reflecting confidence in the company’s medium-term growth prospects.

As per the brokerage, concerns around quick commerce appear overdone, with penetration still near 5 percent and significant headroom for growth. Eternal’s superior execution supports faster expansion than peers, while margin levers remain intact. The expected EBITDA breakeven for Blinkit by early FY27 could act as a key re-rating trigger.

Eternal Ltd.’s valuation looks stretched, trading at an extremely high P/E of 1,460x. Compared to a normal market range of 15–25x, this means investors are paying roughly 65 times more than typical valuations. Such pricing signals overheated expectations and limited the margin of safety.

Financials

Eternal reported robust operating momentum in the September 2025 quarter, with sales reaching  Rs 13,590 crore, up sharply from  Rs 7,167 crore in June 2025. Quick commerce remained the largest contributor at  Rs 9,891 crore, followed by Hyperpure B2B at  Rs 1,023 crore and food ordering at  Rs 2,485 crore, highlighting strong scale-up across growth segments.

Eternal’s quick commerce arm, Blinkit, currently holds  45 percent market share in India’s 10-minute delivery segment, making it the clear market leader. Swiggy’s Instamart holds around 27 percent market share, while Zepto is close behind with about 21 percent, and Bigbasket owns 7 percent. With projections showing continued growth as it expands its store network aggressively.

Additionally, Eternal’s profitability metrics strengthened last quarter, with adjusted EBITDA margin hitting a record 5.3 percent of NOV and EBITDA crossing  Rs 500 crore, up from  Rs 451 crore in Q1FY26. Strong operating leverage and improving scale supported this gain. The company is also accelerating expansion, targeted 2,100 stores till December 2025, above its earlier 2,000-store guidance, signalling continued confidence in demand.

Eternal Ltd is a fast-growing consumer and quick-commerce player known for its rapid expansion, strong order volumes, and aggressive store rollout. Leveraging technology, efficient fulfilment, and a widening product assortment, the company has scaled quickly across key cities. Despite profitability pressures, Eternal continues to prioritise growth, market share, and operational efficiency.

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