Eternal's mcap surge: Hype or heft?

Eternal (earlier Zomato) is ranked in the top 25 and top 15 firms among Nifty 50 companies in terms of total market capitalization (mcap) and free float mcap.

- Manish Joshi

Ranking in terms of free float mcap is higher, leading to more weight-age in Nifty 50, as non-promoter shareholding is at 73%. The Eternal stock price surged 30% in the last two months, driven by upbeat management outlook on its quick commerce arm Blinkit in the QIFY26 call. If a soaring mcap is not supported by strong fundamentals—in this case, success in quick commerce—it can mean inflated and unsustainable valuation.

Eternal’s mcap is often compared with well-established companies such as Tata Motors and Titan. Sometimes, it is pegged against Swiggy. But considering Eternal’s business model, Avenue Supermart (D'Mart) is a more relevant comparison because Blinkit has now shifted to an inventory-owned model from a commission model. Now, the sales will reflect in its books. So, its sales and Ebitda margin should be evaluated versus that of D’Mart.