Fri May 02 04:20:00 UTC 2025: ## Eternal’s Stock Edges Up Amidst Diverging Analyst Opinions on Domestic Ownership Strategy
**MUMBAI, INDIA –** Eternal’s stock price saw a modest increase of 1.14 percent to ₹236.90 by midday today, following conflicting analyst reports released yesterday regarding the company’s decision to remain domestically owned. The conflicting views highlight the uncertainty surrounding the implications of this strategic move.
Jefferies maintained a “Hold” rating with a target price of ₹255, expressing concerns about limited returns on investment despite potential regulatory benefits. The firm noted that the decision could lead to a reduced weight in the MSCI index, although it would allow Eternal’s quick commerce subsidiary, Blinkit, to utilize a first-party inventory model.
Conversely, CLSA reaffirmed its “High Conviction Outperform” rating, setting a significantly higher target price of ₹375. CLSA argued that the domestic ownership structure will give Blinkit a competitive edge, potentially boosting margins, albeit requiring increased working capital. While acknowledging a potential decrease in index weight, CLSA believes this could create opportunities for active investors. The firm anticipates the strategy will allow Blinkit to leverage its scale for broader product selection and potentially lower prices.
First Piper 