- Eternal‘s net income for Q1 is 250 million rupees, which is a 90% decrease year-over-year and misses the estimated 1.07 billion rupees.
- The company’s revenue stands at 71.7 billion rupees, marking a 70% increase year-over-year and exceeding the estimate of 66.24 billion rupees.
- Food delivery revenue increased by 16% year-over-year to 22.6 billion rupees, slightly higher than the estimated 22.35 billion rupees.
- Hyperpure revenue saw a substantial rise of 90% year-over-year to reach 23 billion rupees, surpassing the estimate of 22.13 billion rupees.
- Quick Commerce revenue significantly increased, reaching 24 billion rupees from 9.42 billion rupees last year, outperforming the projected 20.7 billion rupees.
- Total costs amounted to 74.3 billion rupees, an increase of 77% year-over-year.
- Employee benefits expenses rose to 8.3 billion rupees, which is a 57% increase year-over-year and slightly below the estimate of 8.35 billion rupees.
- Delivery and related expenses jumped by 41% year-over-year to 18.7 billion rupees.
- The company approved the incorporation of a wholly-owned unit, Blinkit Foods, aimed at providing food services including innovation, preparation, sourcing, sale, and delivery of food to customers.
- Shares saw a rise of 3.1%, reaching 265.15 rupees with 33.6 million shares traded.
- Analyst ratings include 25 buys, 2 holds, and 4 sells.
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Eternal on Smartkarma
Analysts on Smartkarma, such as Brian Freitas, are closely monitoring Eternal, formerly known as Zomato. In a recent report titled “Zomato/Eternal: Lower Foreign Ownership Limits & The BIG Passive Selling,” Freitas discusses the impact of lowering the Foreign Ownership Limit from 100% to 49.5% on Eternal‘s stock. Freitas highlights the potential for significant passive selling due to this reduction, which may be offset by foreign buying in the short term. The report underscores the importance of monitoring foreign investors’ actions in the stock to gauge the extent of selling in the coming months.
Another analyst, Pranav Bhavsar, offers insights in the report “India Food Delivery | Old Habits Die Easy,” focusing on the changing landscape of food delivery companies in India. Bhavsar discusses Gen Z’s shift towards price loyalty over brand loyalty and the challenges faced by restaurants in a competitive delivery market dominated by platform giants. The report points out the evolution of food delivery businesses into data-driven market leaders and the implications of these shifts for the industry.
A look at Eternal Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts utilizing the Smartkarma Smart Scores for Eternal Limited have painted a promising picture for the company’s long-term outlook. With a solid Growth score of 4 and a Momentum score of 4, Eternal is positioned well for expansion and potential market performance. The company’s ability to adapt and grow in the competitive market is evident, signaling positive future prospects.
While the Value and Dividend scores may not be as high as Growth and Momentum, Eternal‘s resilience score of 3 indicates a robust ability to weather challenges. Overall, with a blend of strong growth potential, positive market momentum, and a resilient core, Eternal Limited appears well-equipped to navigate the online restaurant guide and food ordering platform landscape and potentially excel in the global market.
Summary: Eternal Limited is an online restaurant guide and food ordering platform, connecting customers, restaurants, and delivery partners worldwide for various dining-related services.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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