consumer_services

Eternal (formerly Zomato)

ETERNAL · Nifty 50

₹258.4

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

ValuationPE 625.1 (60%ile of 5Y range 301-653). Trading near median.

Sector Positionconsumer_services sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).

Fundamental Score70/100 (STRONG). 0 positive flags, 2 concerns.

Historical Context67 similar technical setups. Average outcome: -16.2% decline. 0% positive.

Revenue TrendRevenue growing at 196.5% YoY. Strong revenue growth — 196.5% YoY

Fundamental

70/100

STRONG

Trust

95/100

Verification

Coverage

89/100

HIGH

Quick Take

Eternal (formerly Zomato) scores 70/100 on fundamentals (strong). Eternal (formerly Zomato): PE above historical average. BROAD EXPANSION regime.

Fundamental Score: 70/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 1.1% broken into three drivers. Each shows how efficiently the company generates returns.

ROE1.1%=

0.7%Net Margin

1.1xTurnover

1.3xLeverage

ROE of 1.1% is modest efficiency-driven and stable. Net margin of 0.7% × asset turnover of 1.14x × leverage of 1.3x.

What This Means

Net margin of 0.7% means the company keeps ₹0.7 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 1.14x means the company efficiently uses its assets to generate revenue. Leverage of 1.3x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

48.4%

Operating

2.0%

Net

0.7%

improving

Gross margin 48.4% → operating margin 2.0% → net margin 0.7%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 1.9x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

ADEQUATE

Interest covered only 2.6x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 1.9x is low — balance sheet has capacity.

Free Cash Flow

MODERATE

FCF margin negative at -2.4% — spending more than earning. Check capex cycle.

Peer Comparison

Eternal (formerly Zomato) is compared against 1 peers in the consumer_services sector.

ZOMATO

Key Watchpoints

🟢

Breaks above ₹271 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹245 (-5%)

Further downside risk

🟡

PE reverts to 5Y median of 625.1

Valuation normalization

🟢

Consumer_Services sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (124.5%) than equity (2.2%)

✅ High Earnings Quality: Cash flow covers earnings 1.9x — strong cash conversion

Risk Flags

🔴 1 Critical⚠️ 1 Warning2 total flags

🔴Cash covers only 18% of current liabilities

Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️Working capital changes are 194% of operating cash flow

Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

⚠️ 1 critical + 1 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)

⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio

625.1MODERATE

P/B Ratio

7.2HIGH

ROE

1.2%HIGH

Market Cap

₹22414709.2L CrHIGH

From 52W High

70% of high

Promoter Holding

27.2%MODERATE

Institutional

51.1%

Sector Peers

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