In a significant market development, a substantial block trade involving Eternal shares was executed on the National Stock Exchange (NSE) on Tuesday. The transaction, valued at Rs. 87.03 crore, marks a notable movement in the company's stock.

Transaction Details

The block deal involved approximately 2,850,689 shares of Eternal, which were traded at a price of Rs. 305.30 per share. This large-scale transaction highlights the interest in Eternal's stock among institutional investors or large market participants.

Market Implications

Block trades of this magnitude often attract attention from market analysts and investors alike. They can sometimes indicate a shift in institutional holdings or reflect significant investor sentiment towards the company. However, it's important to note that the specific buyers and sellers involved in this transaction have not been disclosed.

About Eternal

Eternal is a company listed on the National Stock Exchange. While specific details about the company's operations are not provided in the current news update, the substantial value of this block trade suggests that Eternal is a company of considerable market interest.

Investor Considerations

Investors and market watchers may want to keep an eye on Eternal's stock performance in the coming days to see if this large block trade has any impact on the stock's price or trading volume. As always, it's advisable for investors to conduct their own research and consider their investment goals before making any financial decisions based on market movements.

Eternal , a prominent player in the quick-commerce and food delivery space, witnessed a significant reshuffling of its investor base during the June quarter, marked by divergent trends among institutional and retail investors.

Institutional Investors' Movements

Foreign institutional investors (FIIs) continued their selling streak for the seventh consecutive quarter, reducing their stake in Eternal from 44.40% to 42.30%. This persistent sell-off by FIIs signals a shift in their investment strategy or outlook towards the company.

In stark contrast, mutual funds substantially increased their ownership in Eternal. Their stake rose from 15.50% in December to an impressive 21.60% in June, indicating a strong vote of confidence in the company's prospects and business model.

Retail Investor Exodus

The June quarter also saw a notable decrease in retail investor participation. Individual investors reduced their holdings from 6.40% to 5.50%, with approximately 300,000 retail investors exiting their positions in Eternal. This movement suggests a change in sentiment among smaller investors or potentially a reallocation of their portfolios.

Blinkit's Strong Performance

Amidst these ownership changes, Eternal's quick-commerce arm, Blinkit, delivered robust quarterly results. The company reported an impressive 140% year-on-year growth in Gross Merchandise Value (GMV), underscoring the rapid expansion of its quick-commerce operations.

Strategic Shift and Analyst Perspectives

Eternal announced plans to transition Blinkit to an inventory-led model over the next 2-3 quarters. Management anticipates this strategic shift will yield approximately 100 basis points of margin expansion, potentially improving the unit economics of the quick-commerce business.

The company's performance and strategic moves have caught the attention of major financial institutions:

• Goldman analysts noted potential market share gains for Blinkit in the quick-commerce space.
• Jefferies upgraded Eternal's stock, setting a target price of Rs 400.00, reflecting optimism about the company's growth trajectory.
• Emkay analysts highlighted the long growth runway for quick-commerce and expressed confidence in the food delivery business maintaining strong profitability.

Outlook

The contrasting movements in Eternal's investor base, coupled with Blinkit's strong performance, paint a complex picture of the company's current position. While the exit of FIIs and retail investors might raise questions, the significant increase in mutual fund ownership suggests strong institutional faith in Eternal's long-term prospects.

As Eternal continues to evolve its quick-commerce strategy and maintain its food delivery profitability, market participants will be keenly watching how these developments translate into financial performance and market valuation in the coming quarters.