Eternal Ltd, the parent of Zomato and Blinkit, has seen its shares slide this month, but Morgan Stanley believes the correction has opened a favourable entry point for investors.
The global brokerage has maintained its ‘overweight’ rating and raised its target price slightly to ₹427, saying Eternal now offers one of the strongest risk-reward profiles in India’s digital sector.
Investor worries have centred on rising losses at Blinkit and stretched valuations, but Morgan Stanley argues that the company’s aggressive expansion, especially new dark stores, will strengthen future profitability. It also sees limited downside, estimating the stock could bottom out near ₹280–285, supported by Eternal’s more than US$1 billion cash buffer.
The brokerage says the recent fall reflects short-term concerns, while the long-term growth story remains intact.
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