Zomato Share Price: Shares of Eternal Ltd — previously known as Zomato — witnessed a significant rally on Thursday, June 5, climbing over 5% intraday on the National Stock Exchange (NSE) to reach a high of ₹258.30. This sharp move marks an 8% gain over just two sessions, driven by strong volumes and upbeat sentiment from global analysts.
Zomato Share Price Target
A major catalyst behind the recent uptick was Morgan Stanley’s bullish stance on Eternal (Zomato) . The brokerage firm reaffirmed its ‘Overweight’ rating, setting a target price of ₹320 — implying a robust 24% upside from current levels.
Morgan Stanley highlighted Eternal (Zomato) as one of its top picks in the Indian internet space, citing key factors such as:
- Market leadership in food delivery and quick commerce
- A leaner cost structure supporting profitability
- A healthy balance sheet ensuring long-term resilience
- Favorable risk-reward, with downside capped around ₹200–₹220
This sentiment has significantly lifted investor confidence, especially amid broader tech stock volatility.
India’s Quick Commerce Market Gets a $15 Billion Upgrade
In a notable forecast revision, Morgan Stanley increased its TAM (Total Addressable Market) estimate for India’s quick commerce sector to $57 billion by 2030, up from the previous estimate of $42 billion.
Key Reasons for the Upgrade:
- Faster-than-expected user base expansion
- Improved last-mile logistics, even beyond Tier-1 cities
- Better-than-anticipated gross order value (GOV) performance
This upgrade reflects the growing traction of services like 10-minute grocery delivery, where Eternal’s Blinkit vertical has seen significant momentum.
Zomato Q4FY25 Financial Results: Mixed Signals
While top-line performance was strong, Eternal’s (Zomato) Q4FY25 earnings painted a mixed picture:
| Metric | Q4FY25 | YoY Change |
|---|---|---|
| Net Profit | ₹39 crore | ▼ 77.7% |
| Revenue from Operations | ₹5,833 crore | ▲ 63.8% |
| EBITDA | ₹72 crore | ▼ 16.3% |
| EBITDA Margin | 1.23% | (vs. 2.41% YoY) |
The sharp dip in net profit was primarily due to increased spending on growth and customer acquisition, particularly in the quick commerce segment. However, the revenue surge of nearly 64% YoY signals continued strong business momentum.
Analyst Takeaway:
Despite pressure on margins, most analysts remain confident in Eternal’s strategic positioning and operational scale, which are expected to pay off in the long term.
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Zomato Long-Term Outlook
With a current market cap of over ₹2.49 lakh crore, Eternal Ltd (Zomato) has firmly established itself as a major player in India’s growing digital economy.
Analysts believe that as digital consumption habits evolve and tech-driven efficiencies scale, Eternal (Zomato) is likely to benefit from:
- Improved operating margins over time
- Premium valuation multiples, especially if the quick commerce model matures sooner
- Leadership in high-growth categories, creating long-term shareholder value
While the Q4 profit decline raised some eyebrows, experts view this as a temporary setback. The focus remains on sustainable growth, market leadership, and EBITDA improvements over the next few quarters.
Conclusion
Given the strong bullish stance by Morgan Stanley, along with favorable sectoral tailwinds and robust revenue momentum, Eternal Ltd (Zomato) appears to be a strong long-term investment candidate in the Indian digital space.
Summary Snapshot:
| Parameter | Value/Insight |
|---|---|
| Current Price (NSE) | ₹258.30 |
| Target Price (Morgan Stanley) | ₹320 |
| Upside Potential | ~24% |
| Market Cap | ₹2.49 lakh crore |
| Key Growth Driver | Quick Commerce, Food Delivery |
| Risk-Reward Outlook | Favourable (Support at ₹200–₹220) |
If you’re looking to gain exposure to India’s booming internet commerce and food-tech sectors, Eternal could be a compelling addition to your portfolio.
