Competition, expansion may weigh on Eternal

However, stock bounces back 8.8 per cent to hit a high of ₹239.5 per share

- NIKITA VASHISHT

Food delivery and quick commerce (qcom) company Eternal, formerly known as Zomato, staged a sharp intraday recovery in its share price on Friday. From a low of ₹220.1 per share, Eternal stock price bounced back 8.8 per cent to hit a high of ₹239.5. The stock finally ended the day at ₹234, with gains of 0.8 per cent.

Shares of Eternal recouped trading losses after most analysts maintained their "buy" rating on the stock as the Deepinder Goyal-led company reported its financial results for the fourth quarter (January-March) of 2024-25 (Q4FY25).

Though they believe Eternal's profitability could stay under pressure in the near term as the company is focused on capturing better market share, especially in the face of heightened competition, and prioritising growth over earnings, the worst could be behind the company after the April-June quarter of the current financial year (Q1FY26). This, they said, puts the company on a long-term growth runway.