Rs 7,200 Crore Buying: Eternal Emerges as Top MF Pick – Buy, Hold or Sell?

Mutual Funds Double Down on Eternal

MFs acquired 22.9 crore additional shares of Eternal in August, taking their total holding to 225.6 crore shares worth Rs 72,665 crore at the month-end price of Rs 322.10 apiece. This marks a significant jump from 202.7 crore shares in July.

Over the past year, institutional ownership has consistently climbed:

• 15.5% in Sept 2024

• 16.5% in Dec 2024

• 19.4% in Mar 2025

• 21.6% in Jun 2025

This trend highlights growing conviction among large investors despite rising competition in the sector.

Stock Performance: Strong Rally in Six Months

Eternal has delivered an impressive 59% return in the last six months, rewarding investors with sustained momentum. Analysts believe strong execution and market positioning in the quick commerce (QCom) space have supported the rally.

Competition Heating Up: Amazon’s Entry

One key challenge ahead is the entry of Amazon Now into the quick commerce market. The e-commerce giant recently expanded to Mumbai after Bengaluru and Delhi. Although Amazon’s 100 dark stores pale in comparison to Blinkit’s 1,544 and Swiggy’s 1,062, analysts warn that Amazon’s deep pockets and long-term ambition make it a competitor worth watching.

Brokerages, however, suggest incumbents like Eternal (through Blinkit) are better positioned due to stronger customer recall, established infrastructure, and scale advantages.

Analysts’ Views: Buy Calls with Upside Targets

• Emkay Global: Retains Buy with a target price of Rs 330, noting that while competition could pressure margins, customer stickiness and potential industry consolidation should drive long-term profitability.

• Motilal Oswal (MOFSL): Upgraded Eternal to Buy with a target of Rs 420. It raised food delivery growth forecasts to 21–23% for FY26–FY27 and values the business at 35x FY27E EBITDA.

Should You Buy, Hold, or Sell Eternal?

For investors, the key question is whether Eternal’s strong rally still offers upside. Current brokerage targets suggest a near-term upside of 3–30%, depending on market conditions and competitive pressures.

• Short-term investors may consider partial profit booking after recent gains.

• Long-term investors could hold or add selectively, given Eternal’s leadership in food delivery and quick commerce.

Conclusion

Eternal’s story reflects both the opportunities and challenges of India’s fast-growing quick commerce and food delivery market. With Rs 7,200 crore MF inflows, rising institutional confidence, and positive analyst outlooks, Eternal looks poised for continued momentum. However, investors must also watch how competition, particularly from Amazon, impacts profitability in the coming quarters.