Eternal Announces Strategic Shift to Inventory Model with 1% Accretion Benefit Expected

1 min read Updated on 22 Jan 2026, 08:23 AM

Reviewed by

Radhika SScanX News Team

Overview

Eternal has announced a strategic shift to an inventory-based business model, with management providing specific guidance on expected benefits. The company anticipates realizing a full 1% accretion benefit from this transition within six to nine months. This operational change represents a significant shift in the company's business approach, with management maintaining transparent communication about implementation timelines and expected financial impact.

*this image is generated using AI for illustrative purposes only.

Eternal has announced a strategic operational shift to an inventory-based business model, marking a significant change in the company's approach to business operations. This transition represents a fundamental shift in how the company manages its business processes and revenue generation.

Strategic Business Model Transition

The company has provided specific guidance regarding the financial impact of this operational change. Management has outlined clear expectations for the benefits that will accrue from implementing the new inventory model approach.

Financial Impact and Timeline

According to management guidance shared during a conference call, the transition to the inventory model is expected to deliver quantifiable benefits to the company's financial performance.

Parameter:	Details
Expected Benefit:	1% accretion
Implementation Timeline:	6-9 months
Model Type:	Inventory-based approach

Management Expectations

The company's leadership has provided a structured timeline for the realization of benefits from this strategic shift. The guidance indicates that the full 1% accretion benefit is anticipated to accrue within six to nine months of implementation. This timeframe suggests a phased approach to the transition, allowing for systematic implementation and gradual benefit realization.

The announcement was made during a conference call, indicating that management is maintaining transparent communication with stakeholders regarding this strategic initiative and its expected outcomes.

Historical Stock Returns for Eternal

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.52%	-9.61%	-8.55%	-13.90%	+17.17%	+106.39%

Eternal

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Eternal Plans Increased CapEx Per Store for Automation and Larger Formats

1 min read Updated on 22 Jan 2026, 08:22 AM

Reviewed by

Naman SScanX News Team

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Overview

Eternal has provided guidance on increased capital expenditure per store for automation investments and larger store formats in coming quarters. The company projects maintaining net working capital days within an 18-day range while targeting ROCE above 40%, reflecting a strategic focus on operational efficiency and technological advancement.

*this image is generated using AI for illustrative purposes only.

Eternal has outlined its strategic capital allocation plans, indicating increased investment per store in the coming quarters. The company's guidance reflects a focus on operational enhancement through technology integration and store format expansion.

Capital Expenditure Strategy

The company expects capital expenditure per store to increase in upcoming quarters, driven by two primary factors. Investments in automation technology represent a key component of this enhanced spending, as Eternal seeks to modernize its operational infrastructure. Additionally, the company is pursuing a trend towards larger store sizes, which requires higher initial capital investment per location.

Investment Focus:	Details
Automation Technology:	Enhanced operational efficiency
Store Format:	Trend towards larger sizes
Timeline:	Coming quarters

Working Capital Management

Despite increased capital expenditure, Eternal projects maintaining efficient working capital management. The company expects net working capital days to remain within an 18-day range, demonstrating continued operational efficiency. This metric indicates the company's ability to manage inventory, receivables, and payables effectively while pursuing expansion and modernization initiatives.

Return on Capital Targets

Eternal has set ambitious profitability targets, aiming for a return on capital employed (ROCE) north of 40%. This target reflects the company's confidence in generating substantial returns from its increased capital investments in automation and larger store formats.

Financial Target:	Projection
ROCE Target:	Above 40%
Working Capital Days:	Within 18-day range

The guidance indicates Eternal's strategic approach to balancing growth investments with operational efficiency, positioning the company for enhanced performance through technological advancement and optimized store formats.

Historical Stock Returns for Eternal