SPECULATIVE 45/100

consumer · ETERNAL

Eternal (formerly Zomato)

Eternal (formerly Zomato): PE above historical average. NARROW LEADERSHIP regime.

Price

₹310.65

Price 2026-07-30

5 day

+10.95%

Short-term move

1 month

+17.40%

Medium-term

Regime

NARROW LEADERSHIP

62% confidence

Market cap

₹266.1k Cr

neutral sector flow

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Price chart

308

+16.73% over period

2025-06-30211 – ₹3582026-07-28

About Eternal (formerly Zomato)

Nifty 50consumer

Eternal Limited, together with its subsidiaries, provides e-commerce platform services to restaurant partners, quick commerce merchants, delivery partners, theatres, sports facilities, and event organizers in India and internationally. The company operates through India Food Ordering and Delivery, Hyperpure Supplies (B2B Business), Quick Commerce, and Going Out segments. It offers a B2C technology platform under the Zomato brand that facilitates listing and online ordering of food items by connecting end users, restaurant partners, and independent delivery partners, as well as food rescue, food on train, and food expense management solutions; and B2B supplies solutions under the Hyperpure brand that supplies value added food ingredients and other products to restaurants, as well as 4PL warehousing and supply chain services. The company also provides quick commerce services under the Blinkit brand that provides on-demand delivery of products across various categories, such as daily essentials, electronics, beauty and personal care, fresh, staples, books, fashion, toys and sports, general merchandise, festive needs, stationery, and emergency supplies; and entertainment services, i...

Internet RetailGurugram, India21,995 employeesWebsite →

At a Glance

ValuationPE 723.5 (67%ile of 3 quarterly points (limited history), range 301-724). Trading near median.
Sector Positionconsumer sector. Flow: neutral. is not among current leaders. Regime: NARROW LEADERSHIP (62%).
Fundamental Score45/100 (SPECULATIVE). 1 positive flags, 5 concerns.
Historical ContextRSI oversold bounces for this stock succeeded only 0% of the time (avg -16.2% over 14 days) — not a reliable pattern.
Revenue TrendRevenue growing at 19650.0% YoY. Strong revenue growth — 19650.0% YoY

RSI pattern warning

RSI oversold bounces for this stock succeeded only 0% of the time (avg -16.2% over 14 days) — not a reliable pattern.

52-week position

Trading at 84.3% of 52-week high

52W low ₹212.652W high ₹368.45

Technicals

RSI 14

65.4

Trend

uptrend

50 DMA

Above

200 DMA

Above

Key metrics

P/E ratio

723.5

67th pct · 3 quarterly points (limited history)

P/B

8.6

ROE

1.2%

Below-average profitability — 1.2% ROE

Market cap

₹266.1k Cr

Revenue growth

19650.0% YoY

Promoter

27.2%

52-week range

₹212.6 – ₹368.45

84.3% of high

RSI (14)

65.4

uptrend

vs 50 DMA

Above

DMA ₹268.32

Fundamental

45/100

SPECULATIVE

Trust

95/100

Verification

Coverage

100/100

HIGH

Score adjusted for extreme valuation (trailing PE 724x, ROE 1.2%).

Quick Take

Eternal (formerly Zomato) scores 45/100 on fundamentals (speculative). Eternal (formerly Zomato): PE above historical average. NARROW LEADERSHIP regime.

Fundamental Score: 45/100 · SPECULATIVE · 2 signals detected

DuPont Analysis

ROE 1.3% broken into three drivers. Each shows how efficiently the company generates returns.

ROE1.3%=
0.6%Net Margin
×
1.5xTurnover
×
1.3xLeverage

ROE of 1.26% is modest efficiency-driven and stable. Net margin 0.6%, asset turnover 1.5x, leverage 1.3x.

What This Means

Net margin of 0.6% means the company keeps ₹0.6 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 1.50x 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

43.5%

Operating

2.0%

Net

0.6%

declining

Gross margin 43.5% → operating margin 2.0% → net margin 0.6%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 1.6x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

ADEQUATE

Interest covered only 2.7x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 1.5x is low — balance sheet has capacity.

Free Cash Flow

MODERATE

FCF margin negative at -1.8% — spending more than earning. Check capex cycle.

Peer comparison

StockPrice5DP/EROERev growthMcap
ASIANPAINT

Asian Paints

₹2,746.2+2.9%60.520.9%1060%₹2.6L Cr
DIXON

Dixon Technologies

₹14,338+3.7%49.337.1%210%₹80.5k Cr
BERGEPAINT

Berger Paints

₹521.35+5.6%52.717.2%610%₹59.3k Cr
BLUESTARCO

Blue Star

₹1,691.4+3.5%62.416.2%130%₹33.0k Cr
AMBER

Amber Enterprises

₹7,401-0.4%151.75.6%1050%₹26.9k Cr
CROMPTON

Crompton Greaves

₹260.3+4.3%N/A-6.3%1080%₹17.5k Cr
DEVYANI

Devyani International

₹118.53+7.9%N/A-2.6%1850%₹14.3k Cr
BLS

BLS International

₹238.75+3.7%14.930.1%1760%₹10.2k Cr
ETERNAL

Eternal (formerly Zomato)

₹310.65+8.2%723.51.2%19650%₹2.7L Cr

Key Watchpoints

🟢

Breaks above ₹326 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹295 (-5%)

Further downside risk

🟡

PE reverts to median of 682.6 (3 quarterly points (limited history))

Valuation normalization

🟢

Consumer 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 1.6x — strong cash conversion

Risk Flags

🔴 2 Critical⚠️ 3 Warning1 Positive6 total flags
🔴Unusual items are 154% of net income
Earnings Quality

One-off items significantly inflating reported profit. Core earnings may be much lower.

🔴Cash covers only 18% of current liabilities
Balance Sheet

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

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹41K Cr. May indicate restructuring, impairment, or one-time costs.

⚠️Non-core revenue is 11% of total
Earnings Quality

Significant income from non-operating sources. Core business may be smaller than it appears.

⚠️Working capital changes are 194% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

Assets relatively new (12% depreciated)
Balance Sheet

Modern asset base. Lower near-term capex requirements.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

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

News Correlation

revenue growth (1)margin pressure (9)capex expansion (1)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
723.5LIMITED
P/B Ratio
8.6HIGH
ROE
119.0%HIGH
Market Cap
₹26607123.2L CrHIGH
From 52W High
84% of high
Promoter Holding
27.2%MODERATE
Institutional
48.3%
Sector Peers
10
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