The share price of Indian technology company Eternal Limited hit a low of ₹251.80 on Tuesday amid a selloff in the equities market.. The number represents a drop of over 6% from the previous close of ₹268. The share slightly recovered during the session and closed at ₹254.40, down by 5.07%. Buy Rating Despite the stock’s weakness, the global brokerage house Jefferies gave it a buy rating with a target price of ₹480, The figure represents an upside potential of 78% for the food delivery platform Zomato’s parent company. Citing Jefferies’ report, Financial Express said that the bullish stance on Eternal’s stock is due to the continued demand for food delivery as a growing number of consumers now prefer ordering food at home. “Food delivery is expected to sustain approx. 20% growth with modest margin expansion,” the Jefferies’ report said.”Food delivery continues to be the cash engine.” Quick commerce, or the fast delivery of groceries and essentials, is also a key driver. The brokerage said that the market remains attractive albeit competition poses a problem to Blinkit, the company’s quick commerce arm. “This clouds the near-term outlook for Blinkit’s growth rates as mgmt. intends to stay disciplined and not follow the easy route of aggressive discounting/promotions.” Founder Steps Down Last month, Eternal founder Deepinder Goyal also announced that he is stepping down from his position as CEO though he will still serve as vice chairman and remain on the company’s board of directors. As to why he decided to quit and settle to vice chairman position, Goyal said that he has found himself drawn to new ideas that are better pursued outside a public company. “While I believe I personally have the bandwidth to continue what I am doing at Eternal, and also explore new ideas outside of it, the expectations, legal and otherwise, of a public company CEO in India demand singular focus,” he said.
