Motilal Oswal retains Buy on Eternal and Arvind Fashions, sees up to 41% upside

The brokerage cited improving Blinkit quick-commerce economics for Eternal and healthy retail growth, a stronger D2C mix, sourcing efficiencies and premium-led margin expansion at Arvind Fashions. It values Eternal at Rs 400 and Arvind Fashions at Rs 620.

— Source publishedThu, 23 Jul, 2026, 11:49 IST·First seen Thu, 23 Jul, 2026, 12:22 IST·Source Financial Express · BrandWagon

What happened

Motilal Oswal retained Buy ratings on Eternal and Arvind Fashions, citing Blinkit’s improving quick-commerce economics and Arvind’s healthy retail growth,

Key facts

  • Eternal target price: Rs 400; implied upside: 41%
  • Blinkit adjusted EBITDA margin guidance: 6%
  • Eternal NOV growth target: over 60%
  • Eternal EBITDA target: USD 1 billion by FY29
  • Sunteck Realty target price: Rs 490; implied upside: 69%
  • Sunteck Realty June-quarter pre-sales growth: 20% YoY
  • Sunteck Realty launch pipeline: about Rs 7,100 crore
  • Arvind Fashions target price: Rs 620; implied upside: 31%
  • Arvind Fashions FY26-FY28 revenue CAGR: 13%; EBITDA CAGR: 18%; PAT CAGR: nearly 30%

Why this matters

The thesis highlights attractive partnership or acquisition themes in quick-commerce infrastructure, D2C capabilities, sourcing efficiency and premium-brand portfolios that can compound margins alongside retail growth.

What to watch

  • Blinkit adjusted EBITDA margin trajectory, contribution margin per order and cash burn.
  • Blinkit order growth, average order value, dark-store productivity and advertising revenue mix.
  • Competitive pricing and expansion activity from Swiggy Instamart, Zepto and other quick-commerce operators.
  • Arvind Fashions same-store sales growth, D2C share, gross-margin movement and inventory/markdown levels.
  • Progress against Arvind Fashions' FY26-FY28 revenue, EBITDA and PAT growth targets.
  • Consumer discretionary demand, apparel inflation and premium-category sales trends.
  • Eternal may prioritize higher-frequency categories, advertising monetization and delivery-density improvements over indiscriminate geographic expansion.
  • Blinkit competitors may respond with promotions, faster-delivery investments and higher rider/warehouse spending, raising sector-wide cash-burn risk.
  • Arvind Fashions may accelerate D2C assortment, loyalty programs and premium retail formats while rationalizing lower-productivity channels.
  • The brokerage call could draw incremental institutional attention to earnings estimates, especially if quarterly execution validates the margin assumptions.