Eternal shares jump over 8% in 2 days. Here's why
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Shares of food aggregator Eternal (formerly Zomato) surged over 5% on Thursday to hit an intraday high of Rs 258.3 on the NSE, extending their two-day rally to over 8%. The stock was buoyed by strong trading volumes, with around 4.15 crore shares worth Rs 1,055.7 crore changing hands during the session. The major catalyst for the rally was Morgan Stanley reiterating its ‘Overweight’ rating on the stock, maintaining a target price of Rs 320 per share. The brokerage said it continues to view Eternal as a top pick, citing the company’s market leadership in both food delivery and quick commerce, a superior cost structure that enables healthier unit economics compared to peers, and a stronger balance sheet that limits the risk of any further equity dilution. Morgan Stanley also noted that the risk-reward outlook remains favourable, with a potential downside floor around Rs 200–220. Meanwhile, the brokerage has revised its outlook for India’s q...