Eternal has witnessed significant institutional activity with a major block trade executed on the National Stock Exchange (NSE). The transaction represents one of the notable large-volume trades in the stock, indicating substantial investor interest.

Block Trade Details

The block trade executed on NSE involved a considerable volume and value, demonstrating significant market activity in Eternal shares.

Market Significance

Block trades represent large-volume transactions that are typically executed outside the regular market mechanism to minimize price impact. These transactions usually involve institutional investors, mutual funds, insurance companies, or other large market participants who need to buy or sell substantial quantities of shares.

The execution price of ₹282.90 per share for this block trade provides insight into the institutional valuation of Eternal shares. Such transactions often occur when there is strategic repositioning by large investors or when institutional funds are rebalancing their portfolios.

Transaction Volume Analysis

The transaction involving approximately 39.05 lakh shares represents a significant portion of trading activity. Block trades of this magnitude typically require careful execution to ensure minimal market disruption while facilitating the transfer of large share quantities between institutional parties.

Such substantial block trades often indicate confidence in the company's fundamentals from institutional investors, as these participants typically conduct thorough due diligence before executing large-value transactions.

Eternal shares surged over 3% in intraday trading on Friday, extending gains for the third consecutive session after Goldman Sachs reiterated its positive stance on the stock. The rally came as the global brokerage expressed disagreement with the market's bearish sentiment toward the online food-delivery company.

Stock Performance and Trading Activity

On the National Stock Exchange, Eternal climbed 3.3% to reach an intraday high of ₹292.90 per share during Friday's trading session. The stock's performance marked a notable recovery amid broader market concerns.

Goldman Sachs Maintains Bullish Outlook

Goldman Sachs reiterated its buy rating on Eternal while adjusting its price target. The brokerage trimmed its target price to ₹375 from the previous ₹390, yet maintained confidence in the company's long-term prospects.

The brokerage specifically stated: "We disagree with the extent of bearishness being priced into ETEA," referring to the stock's recent underperformance relative to broader market indices.

Recent Performance Challenges

Despite Friday's gains, Eternal has faced significant headwinds in recent months. The stock has declined approximately 17% over the past three months, contrasting sharply with the benchmark indices' 3% rise during the same period.

Market Concerns and Business Context

Goldman Sachs identified key factors behind the recent sell-off, noting that the 14.6% decline during the October-December period reflected investor concerns over heightened competition and expectations of a slowdown in quick commerce. Eternal serves as the parent company of food delivery platform Zomato and quick-commerce firm Blinkit, positioning it at the center of India's rapidly evolving online food and grocery delivery market.

The brokerage's continued bullish stance suggests confidence in the company's ability to navigate current market challenges and maintain its competitive position in the online food delivery and quick commerce sectors.