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.

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.