Eternal shares rise 9% as Jefferies adds shares to the Indian model portfolio and calls it ‘FPI favorite’. This is why

Shares of food delivery and express delivery company Eternal rose as much as 9.3% to hit an intraday high of Rs 298.50 on the BSE on Tuesday after global broker Jefferies added the stock to its Indian model portfolio, replacing Godrej Consumer Products.Jefferies described Eternal as an “FPI favorite”, citing strong growth and steady margin improvement in both quick trade and food delivery. “The stock is trading 25% below its peak and offers an improving risk-reward profile,” Jefferies analyst Mahesh Nandurkar said in a Feb. 2 note.

Jefferies has set a street-high target price of Rs 480 per share for Eternal stock, underscoring its bullish stance on the company’s high-speed trading capabilities. The brokerage estimates a 75% increase from current levels.“In our base case, we expect a CAGR of 16% in food delivery revenue in FY25-28,” Jefferies said. It expects unit economics to steadily improve as scale increases, driven by operating leverage, cost efficiency and an increasing willingness to pay for convenience.

Jefferies values ​​Eternal’s food delivery business at adjusted EBITDA of 40x March 2028E, Quick Trade at 2.5x March 2028E sales and the Going-Out segment at 1.5x gross order value (GOV) to achieve the price target of Rs 480.

The brokerage highlighted two major positives. First, Blinkit reported positive EBITDA despite high competitive intensity, reflecting strong execution, aided by higher average order values, an improved mix, a shift to the 1P model and benefits from previous investments. Secondly, Deepinder Goyal’s stepping down as CEO and handing over the role to Albinder Dhindsa was highlighted as a governance milestone, although Jefferies said there would be no operational impact in the short term as both would continue with their existing responsibilities.

Eternal snapshot of the third quarter

Eternal’s consolidated net profit rose 73% year-on-year to Rs 102 crore from Rs 59 crore in Q3FY25, while operating profit rose 57% sequentially. Adjusted EBITDA rose 28% YoY to Rs 364 crore and rose 63% QoQ from Rs 224 crore in Q2FY26. B2C NOV grew 55% YoY and 11% QoQ to Rs 25,732 crore, crossing Rs 1 lakh crore YoY.

Revenue from operations rose 202% year-on-year to Rs 16,315 crore in Q3FY26, compared to Rs 5,405 crore a year ago, and rose 20% quarter-on-quarter.

Food delivery growth in November continued to recover, rising 17% year-on-year and 4.5% quarter-on-quarter in the third quarter of 2026, marking the second consecutive quarter of acceleration after a low of 13.1% year-on-year in the first quarter of 2026.

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