Zomato Stock Price: Analysis of Eternal Ltd's Market Performance

1. Overview and Market Identity

The zomato stock price is a key indicator of India's evolving digital economy. Zomato, recently rebranded as Eternal Ltd, serves as a leader in the convenience technology sector, primarily focusing on food delivery and the burgeoning quick commerce market. As of late 2024, the company has solidified its position as a large-cap entity on Indian exchanges.

Eternal Ltd is officially listed on the National Stock Exchange (NSE) under the ticker ETERNAL and the Bombay Stock Exchange (BSE) under the code 543320. This transition from the original 'ZOMATO' ticker reflects the company's strategic expansion into a multi-brand conglomerate that oversees various verticals beyond its initial food discovery platform.

2. Stock Performance and Valuation

Analyzing the zomato stock price requires a look at its historical journey since its 2021 IPO. According to data from various financial trackers as of late 2024, the stock has experienced significant volatility, trading within a 52-week range of approximately ₹194.80 to ₹368.45. This price action reflects investor sentiment regarding the company's path to profitability.

Key financial metrics currently define its valuation. With a market capitalization reaching approximately ₹2.93 trillion, the stock is often evaluated based on its Price-to-Earnings (P/E) ratio and Price-to-Book (P/B) ratio. The rebranding to Eternal Ltd signals to the market that the company is no longer just a food delivery app but a diversified tech ecosystem, which has influenced its recent upward valuation trends.

3. Business Segments and Revenue Drivers

The performance of the zomato stock price is intrinsically linked to three core business segments:

• Food Delivery: This remains the primary B2C revenue driver, connecting millions of customers across over 800 Indian cities with local restaurants.
• Quick Commerce (Blinkit): The acquisition of Blinkit has become a pivotal growth engine. Investors closely watch this segment’s path toward operational breakeven, as rapid delivery services gain massive traction in urban India.
• B2B Supplies (Hyperpure): This vertical provides high-quality ingredients and supplies to restaurants, ensuring vertical integration and creating a more resilient supply chain ecosystem.

4. Financial Health and Quarterly Results

A major turning point for the zomato stock price occurred when the company reported its first consolidated Net Profit (PAT) in FY2024. Prior to this, the company was characterized as a loss-making startup. This shift toward sustainable profitability has attracted a diverse group of investors.

According to recent financial reports, the company has seen consistent Year-over-Year (YoY) revenue growth driven by an expansion in Gross Order Value (GOV). The shareholding pattern also reveals strong institutional backing, with significant stakes held by Foreign Portfolio Investors (FPIs), domestic Mutual Funds, and a growing base of retail investors who are optimistic about the tech sector's future.

5. Market Outlook and Analyst Ratings

Market sentiment regarding the zomato stock price remains largely positive. As of [Current Date], consensus ratings from global brokerages such as Jefferies and Kotak suggest a "Buy" sentiment, with average price targets frequently updated to reflect the rapid growth of Blinkit. Analysts are particularly focused on the company's 5-6% margin expansion targets.

The competitive landscape remains intense, with Eternal Ltd facing stiff competition from rivals like Swiggy and Zepto, especially in the quick commerce space. However, many analysts predict that the company's potential inclusion in major indices like the Nifty 50 could provide further liquidity and institutional support for the stock in the coming years.

6. Risk Factors

Investors tracking the zomato stock price should be aware of specific risks. Regulatory challenges, including Goods and Services Tax (GST) demands and evolving labor laws regarding gig economy workers, can impact operational costs. Furthermore, the high-intensity competition in quick commerce requires significant capital expenditure, which could affect short-term margins. As with any technology stock, it remains susceptible to broader market volatility and shifts in consumer discretionary spending.

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