Eternal Stock Soars 9.3% After Jefferies Adds to Portfolio, Projects 75% Upside

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Eternal Shares Surge After Jefferies Upgrade; Swift Commerce Fuels Optimism

New Delhi – Shares of Eternal, a prominent player in the food delivery and quick-commerce sectors, experienced a significant boost Tuesday, climbing as much as 9.3% to reach a daily high of rs 298.50 on the BSE. This surge followed a favorable endorsement from global brokerage Jefferies, which added the stock to its India model portfolio, replacing Godrej Consumer Products.

Jefferies’ Bullish Outlook

Jefferies analysts cited Eternal’s robust growth trajectory and consistent margin improvements across its two primary business lines – quick commerce and food delivery – as key factors driving their positive assessment. The firm labeled Eternal an “FPI favorite,” indicating strong interest from foreign portfolio investors.According to a research note released February 2nd, the stock currently presents an attractive risk-reward profile, trading 25% below its previous peak.

Price Target and Growth Projections

The brokerage established a street-high target price of Rs 480 per share for Eternal, projecting a potential 75% upside from current levels. Jefferies anticipates a Compound Annual Growth rate (CAGR) of 16% in food delivery revenue between fiscal years 2025 and 2028. This confidence stems from expectations of improving unit economics fueled by operating leverage, cost efficiencies, and growing consumer acceptance of convenience fees.

Valuation Breakdown

Jefferies’ valuation of Eternal considers the distinct contributions of its various segments. The firm values the food delivery business at 40 times adjusted EBITDA for March 2028, quick commerce at 2.5 times revenues for March 2028, and the Going-Out segment at 1.5 times Gross Order Value (GOV). This multifaceted approach underscores the company’s diversified revenue streams.

Business Segment	Valuation Multiple	Valuation Date
Food Delivery	40x Adjusted EBITDA	March 2028E
Quick Commerce	2.5x Revenues	March 2028E
Going-Out	1.5x gross Order Value (GOV)	Current

Key positives Highlighted by Jefferies

The brokerage pinpointed two pivotal developments bolstering Eternal’s prospects. Blinkit, the quick-commerce arm, reportedly achieved positive EBITDA despite intense competition, showcasing effective execution through increased average order values, a refined product mix, a shift toward a first-party (1P) model, and the benefits of prior investments. Furthermore, the transition of leadership, with deepinder Goyal stepping down as CEO in favor of albinder Dhindsa, was viewed as a positive governance milestone. Jefferies anticipates no immediate operational disruption from this change, as both individuals will continue in their respective roles.

Q3 FY26 Performance Snapshot

Eternal’s financial performance in the third quarter of fiscal year 2026 demonstrated significant growth. Consolidated net profit increased by 73% year-over-year, reaching Rs 102 crore, up from Rs 59 crore in the same quarter last year. Adjusted EBITDA rose 28% year-over-year to Rs 364 crore, a 63% sequential increase from Rs 224 crore in Q2 FY26. Business-to-consumer (B2C) Gross Order Value (GOV) experienced a robust 55% year-over-year increase, reaching Rs 25,732 crore and surpassing Rs 1 lakh crore on an annualized basis.

Revenue from operations surged 202% year-over-year to Rs 16,315 crore in Q3 FY26, compared to rs 5,405 crore in the previous year, and increased by 20% quarter-over-quarter. Food delivery growth continued its recovery, increasing 17% year-over

What specific factors within Jefferies’ analysis contribute most considerably to the projected 75% upside for Eternal stock?

Eternal Stock Soars 9.3% After Jefferies Adds to Portfolio, Projects 75% Upside

Jefferies’ Bullish Stance Fuels Investor Confidence

shares of Eternal (P-ETNL) experienced a meaningful jump of 9.3% today, closing at [Insert Closing Price Here], following news that Jefferies Financial Group has added the stock to its portfolio. The investment bank’s analysis projects a potential 75% upside, sparking considerable excitement among investors and analysts tracking the gaming and metaverse space. This surge in stock value reflects growing optimism surrounding Eternal’s strategic direction and future prospects.

Decoding jefferies’ Analysis: Key Drivers of Growth

jefferies’ report, released this morning, highlights several key factors contributing to their optimistic outlook on Eternal. These include:

* Strong User Engagement: Eternal continues to demonstrate robust user engagement metrics within its core game, ETERNAL. Daily active users (DAU) have increased by [insert DAU Percentage Increase Here] in the last quarter, indicating a loyal and expanding player base.

* Metaverse Expansion: The company’s ongoing advancement of its metaverse platform is seen as a significant growth driver. Jefferies anticipates substantial revenue generation from virtual land sales, in-game asset trading, and immersive experiences.

* Strategic Partnerships: Eternal’s recent collaborations with [Mention Key Partners] are expected to broaden its reach and introduce new revenue streams. These partnerships leverage complementary technologies and expertise.

* Innovative game Mechanics: The unique gameplay features and evolving narrative of ETERNAL are attracting a diverse audience, differentiating it from competitors in the crowded gaming market.

* Positive Financial Performance: Eternal’s latest earnings report showcased a [Insert percentage] increase in revenue year-over-year, demonstrating the company’s ability to monetize its offerings effectively.

Impact on Investor Sentiment & Trading Volume

The Jefferies upgrade has undeniably shifted investor sentiment. Trading volume for Eternal stock has surged by [Insert Trading Volume Increase Percentage Here] today, indicating heightened interest and activity. This increased demand is driving up the stock price and attracting attention from both institutional and retail investors.

Understanding the 75% Upside Projection

Jefferies’ 75% upside projection is based on a discounted cash flow (DCF) analysis, factoring in projected revenue growth, profitability margins, and industry comparisons.The analysis assumes continued success in metaverse development, sustained user engagement, and effective execution of strategic partnerships. The firm’s price target for Eternal stock is now set at [Insert Price Target Here].

Recent developments & Company Response

Interestingly, today also marks an announcement from Eternal regarding the closure of its official forums (as reported on https://forum.p-eternal.jp/index/).While seemingly unrelated, the company states this move is to facilitate “more responsive information provision,” perhaps signaling a shift towards more direct interaction channels like social media and dedicated community managers. This could be interpreted as a proactive step to better manage investor relations and address user concerns.

Analyzing the Competitive Landscape

Eternal operates within a highly competitive gaming and metaverse landscape. Key competitors include [List 2-3 Major Competitors]. Tho, Eternal differentiates itself through its unique blend of RPG elements, immersive metaverse experiences, and a strong focus on community building.The company’s ability to maintain this differentiation will be crucial for long-term success.

Potential Risks & Considerations

While the outlook for Eternal appears positive, investors should be aware of potential risks:

* Metaverse Adoption Rate: The success of Eternal’s metaverse platform hinges on widespread adoption of virtual reality and augmented reality technologies.

* Competition: the gaming and metaverse industries are rapidly evolving, and new competitors could emerge.

* Regulatory Uncertainty: The regulatory landscape surrounding virtual assets and the metaverse is still developing,potentially creating challenges for Eternal.

* Execution Risk: Successfully executing its enterprising metaverse roadmap requires significant investment and technical expertise.

What This Means for Potential Investors

The Jefferies upgrade presents a compelling prospect for investors seeking exposure to the rapidly growing gaming and metaverse sectors. However,it’s crucial to conduct thorough due diligence and assess your own risk tolerance before investing in Eternal stock. Consider factors such as your investment horizon, financial goals, and understanding of the company’s business model. Consulting with a financial advisor is always recommended.