Eternal Ltd shares experienced significant upward movement in early trading on Friday, driven by substantial block deal activity and investor interest despite mixed fundamental developments.

Stock Performance and Block Deal Activity

The company's shares rose as high as 3.3% to ₹292.90 apiece during early trade, marking the highest level since December 16, 2025. This surge followed a notable block deal involving 5.3 million shares changing hands, indicating significant institutional or large investor activity.

The stock's performance contrasted sharply with the broader market, as the benchmark Nifty 50 remained largely unchanged with a marginal 0.04% decline.

Morgan Stanley's Quick Commerce Outlook

Morgan Stanley has revised its expectations for the quick commerce sector, anticipating slower momentum in the December quarter. The brokerage projects net order value growth to moderate to approximately 16% quarter-on-quarter for Eternal, representing a deceleration from stronger growth witnessed in the previous quarter.

Despite the tempered growth expectations, significant challenges remain in the profitability landscape:

The brokerage maintains its preference for Eternal over Swiggy, citing the company's stronger execution capabilities and sustained market share gains in the competitive quick commerce space.

GST Demand Notice Challenges

Eternal disclosed receiving a GST demand order totaling ₹3.69 crore from the Additional Commissioner of State Tax (Appeals), West Bengal. The order, received on January 6, 2026, relates to alleged short payment of output GST for the period from April 2019 to March 2020.

Analyst Sentiment and Price Targets

The stock maintains strong analyst support despite recent challenges. Out of 33 analysts tracking the company, 29 maintain 'buy' ratings while only four suggest 'sell' recommendations. The average 12-month consensus price target implies an upside potential of 29.8%, reflecting continued confidence in the company's long-term prospects despite near-term headwinds in the quick commerce sector.

Eternal Materials witnessed a major block trade transaction on the National Stock Exchange (NSE), marking a significant trading activity for the company's shares.

Transaction Details

The block trade involved substantial volume and value, representing a noteworthy market transaction for the company.

Block Trade Significance

Block trades are large-volume transactions that are typically executed through special trading mechanisms on stock exchanges. These transactions usually involve institutional investors, mutual funds, or other large market participants looking to buy or sell substantial quantities of shares without significantly impacting the stock's market price.

The transaction represents approximately 5.3 million shares changing hands at the specified price point of ₹290.30 per share. Such large-scale transactions often occur when institutional investors are rebalancing their portfolios or when there are strategic stake changes in the company.

Market Impact

Block trades are generally executed to minimize market disruption that could occur if such large volumes were traded through regular market mechanisms. The execution at ₹290.30 per share provides insight into the institutional valuation of Eternal Materials' equity at the time of the transaction.

The substantial transaction value of ₹153.85 crores indicates significant institutional interest or portfolio adjustments involving Eternal Materials' shares, reflecting the company's position in institutional investment portfolios.