Eternal stock: Bernstein favors Blinkit despite volatility
Published on 11/03/2026 at 17:09 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSBernstein favors Blinkit's growth path
- Bernstein expects Blinkit to retain its quick-commerce lead as competition intensifies across India.
- The brokerage identifies unit economics, cash use and operating execution as key valuation drivers.
- Bernstein expects margins and stock returns to remain volatile while rivals expand aggressively.
Eternal stock is in focus after Bernstein named the company's quick-commerce arm Blinkit its preferred sector pick, according to The Economic Times. The brokerage expects Blinkit to outpace Swiggy, Instamart and Zepto in 2026, supported by stronger operating metrics, lower cash burn and more established contribution margins.
Competition keeps margins uncertain
Bernstein expects quick-commerce competition to remain intense as market leaders defend customer cohorts and challengers expand their dark-store networks. The brokerage sees discounting and store additions weighing on visibility into margins beyond the next one or two quarters.
For investors, Bernstein points to per-store operating metrics, unit economics and capital allocation as more useful indicators than headline scale alone. It expects the sector to grow strongly, but cautions that profitability and stock returns may remain uneven as companies compete for market share.
Bernstein set a target price of INR 370 for Eternal, implying 31 percent upside from the level cited in the report. The brokerage's view rests on Blinkit's ability to preserve its lead while improving economics, rather than on near-term margin expansion.
Eternal company profile
- Company: Eternal Limited
- ISIN: INE758T01015
- Businesses: Food delivery, quick commerce, going-out and B2B supplies
India's broader equity market remains the relevant backdrop for Eternal as investors weigh growth spending against the path to stronger quick-commerce profitability. Current market reports.
