Motilal Oswal reiterates Buy on Eternal, sees up to 34% upside with Rs 380 target
Motilal Oswal keeps 'Buy' on Eternal (parent of Zomato and Blinkit), citing improving unit economics across food delivery and quick commerce. Brokerage models ~20% GOV growth over FY27-28 and a path to $1 billion adjusted Ebitda by FY29, valuing the stock at 35x EV/Ebitda.
What happened
Zomato (Eternal) · Motilal Oswal reiterates 'Buy' on Eternal with Rs 380 target (34% upside), bullish on Zomato food delivery and Blinkit quick commerce, citing
Key facts
- target Rs 380
- 34% upside
- 35x EV/Ebitda
- ~20% GOV growth FY27-28
- ~70% Q-comm growth FY27
- $1 billion adjusted Ebitda FY29E
- ~$500 million quick commerce
- ~$425 million FD
Why this matters
Eternal's dual engine of Zomato and Blinkit reaching scaled profitability strengthens its position for consolidation and partnership plays across India's food-delivery and quick-commerce landscape.
What to watch
- Quarterly Blinkit contribution margin and store count trajectory
- Food delivery GOV growth vs the ~20% FY27-28 model
- Competitor funding rounds and discounting intensity (Zepto, Instamart)
- Gig-worker or e-commerce policy announcements
- Adjusted Ebitda run-rate progress against $1bn FY29 milestone
- Peer brokerages update targets, creating consensus drift toward or away from Rs 380
- Eternal accelerates Blinkit dark-store rollout to defend GOV share
- Institutional flows rotate into the q-commerce narrative, raising intraday volatility
- Management guidance emphasis shifts toward profitability metrics over pure GMV growth