HDFC Securities has lifted its rating on Eternal to buy, keeping the target price at Rs 340—a level that promises more than 48% upside from the current Rs 229 share price. This upgrade reflects analysts' faith in Eternal's execution across food delivery, quick commerce through Blinkit, and new verticals amid India's booming digital consumption market. For medium- to long-term investors, the stock now offers a strong risk-reward profile as profitability edges closer.

Execution Strength Across Core Verticals

Eternal distinguishes itself through efficient scaling in a cutthroat digital commerce environment. Food delivery shows revival with projected 20% year-over-year growth in monthly transacting users, 24% in order volumes, and 18% in net order value. Blinkit, the quick commerce arm, leads with supply chain advantages, planning 250 new dark stores for 10% quarter-on-quarter net order value growth at Rs 834,000 average daily per store.

Platform changes bolster resilience: fee increases of 17-19% counter higher fulfillment costs from wider delivery radii, while raised minimum orders for discounts aid unit economics. The going-out segment, via the District app, draws solid user engagement in movies and events, with losses peaking at Rs 1.2 billion in Q3 before sequential moderation.

Financial Projections Signal Profitability Shift

Analysts forecast steady margin expansion, with adjusted EBITDA margins climbing from 2.0% in FY26E to 3.2% in FY28E. Revenue surges from Rs 545,603 million in FY26E to Rs 1,181,771 million in FY28E, alongside EPS growth from Rs 0.3 to Rs 2.2.

Blinkit nears adjusted EBITDA breakeven, a pivotal step, while the going-out business holds potential for USD 3 billion net order value at 5% margins by FY30—value not yet reflected in pricing.

Sum-of-Parts Valuation Underpins Target

The Rs 340 target derives from a sum-of-the-parts model: food delivery at 45x FY28 EV/EBITDA yields Rs 134 per share; quick commerce at 1.5x FY28 NOV adds Rs 166; going-out at 1.0x GOV contributes Rs 18; and Hyperpure plus others Rs 4.

Risks include escalating fulfillment costs, quick commerce rivalry, and execution in new areas. Support sits at Rs 210-200, resistance at Rs 260-300; accumulate on dips for 12-24 month holds. Eternal's multi-vertical momentum positions it for sustained gains in digital consumption.