Eternal, a food delivery and quick commerce company, has seen its stock price decline by 30% from its peak of ₹368.45, currently trading at ₹246.60. Despite this steep drop and a trailing P/E ratio of around 670X, retail investors have increased their shareholding to 5.64%, up from 5.35% in the previous quarter. This trend indicates a buy-on-dips strategy among retail investors, who are undeterred by the company's high valuation. In the last six months, the stock has corrected 25%, hitting a 52-week low of ₹212.60.

Eternal reported a remarkable 346% year-on-year growth in consolidated net profit for Q4FY26, amounting to ₹174 crore, while revenue surged 196% YoY to ₹17,292 crore. However, the company faced a 31% decline in net profit for the full financial year, primarily due to investments in its quick commerce business and a slowdown in food delivery operations. Analysts emphasize that Eternal must enhance its profitability significantly to justify its current market valuation, which peaked at ₹3.6 lakh crore but now stands at ₹2.38 lakh crore.

Mutual funds have shown bullish sentiment, increasing their stake to 28.9%, while foreign institutional investors have reduced theirs to 32.6%. Analysts from Elara Capital and HDFC Securities maintain a 'Buy' rating on the stock, citing potential profitability improvements amidst a recovering food delivery market.