Eternal shares rise 7.8% in pre-market trading

Eternal shares rise 7.8% in pre-market trading

Eternal shares, formerly known as Zomato, have seen a significant surge in pre-market trading, rising by 7.8% on July 2, 2025. This unexpected rally comes despite a substantial 90% year-over-year decline in the company's first quarter net profit. The stock jumped to ₹276.80 in intraday deals, an increase of 7.55% from its previous close [2].

The strong performance of Eternal's shares can be attributed to the robust performance of its quick commerce arm, Blinkit. Blinkit's net order value (NOV) exceeded that of the food delivery business for the first time in Q1 2025, marking a significant milestone. The company's quick commerce segment grew by 127% year-over-year, driven by a 123% increase in average monthly transacting customers [2].

Analysts have highlighted that investors are focusing on the long-term potential of Eternal's high-growth segments, such as Blinkit, rather than the current profitability setbacks. The company's ability to capture further market share and future scalability has been cited as the primary driver for the stock's rally [2].

Additionally, Eternal's strong revenue growth in key segments, including a 90% year-over-year increase in Hyperpure (B2B) revenue and a 153% growth in quick commerce, has been noted as a significant factor contributing to the stock's upward movement. While the company's food ordering and delivery business grew by 16% year-over-year, investors remain optimistic about the company's diversified model and its ability to deliver strong top-line growth despite margin setbacks [2].

Eternal's stock rally reflects market optimism around its strong revenue growth in high-growth segments. The company's substantial cash reserves of ₹18,857 crore also provide a buffer for future investments and growth opportunities [2].

Technical charts also indicate a strong bullish structure for Eternal shares. The stock has been trading around the 260 zone for the past 40 days and has shown renewed buying interest following the Q1 earnings announcement, which suggests that the stock is on track to test the 286 zone in the near term [2].

In conclusion, Eternal shares have seen a notable increase in pre-market trading, driven by the strong performance of its high-growth segments and market optimism around future scalability. Investors remain optimistic about the company's long-term potential, despite current profitability setbacks.

References:
[1] https://www.gurufocus.com/news/2989164/tsmc-tsm-market-cap-hits-1-trillion-amid-ai-demand-surge?r=4bf001661e6fdd88d0cd7a5659ff9748
[2] https://www.livemint.com/market/stock-market-news/eternal-share-price-surges-7-despite-a-massive-90-drop-in-q1-profit-whats-behind-the-trend-explained-11753092567629.html
[3] https://ih.advfn.com/market-news/article/13155/trump-media-builds-2-billion-bitcoin-holdings-shares-rise-8
[4] https://www.globenewswire.com/news-release/2025/07/21/3118568/0/en/Spotlight-Stock-Market-has-today-approved-PHOTOCAT-application-to-admit-the-Company-s-shares-for-trading-on-Spotlight-Stock-Market.html