🪞 At a Glance
Eternal Ltd (a.k.a. Zomato) is India’s OG food tech player that went from ₹-2,386 Cr losses in FY20 to ₹527 Cr profit in FY25. It now runs food delivery, Blinkit (quick commerce), dining out, and Hyperpure (B2B food supply) — while maintaining a cult status with Gen Z. But at 482x P/E, is it a joke or just… eternally expensive?
1. 🎯 Introduction with Hook
If valuation = vibes, then Eternal Ltd is the Dalai Lama of the stock market.
It took 5 years, 4 pivots, 2 acquisitions, and a pandemic for this startup to show a tiny profit — and the market rewarded it with a ₹2.5 lakh Cr market cap.
Because why not?
2. 🏭 Business Model – WTF Do They Even Do?
| Segment | Revenue Split FY25 | Notes |
|---|---|---|
| 🍱 Food Delivery | 44% (vs 81% in FY22) | Core B2C app, now profitable |
| ⚡ Blinkit (Quick Commerce) | ~30% est. | Groceries in 10 mins, burning cash but scaling |
| 🧑🍳 Hyperpure | ~20% est. | B2B supply chain to restaurants |
| 🍽️ Dining Out & Others | <10% | Zomato Gold, ad revenue |
Revenue shift shows clear pivot toward diversification and ecosystem play.
3. 📈 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,994 | 4,192 | 7,079 | 12,114 | 20,243 |
| Net Profit (₹ Cr) | -816 | -1,222 | -971 | 351 | 527 |
| EPS (₹) | -23,124 | -1.54 | -1.14 | 0.40 | 0.55 |
| ROE (%) | NA | NA | -3% | 0% | 2% |
| OPM (%) | -23% | -44% | -17% | 0% | 3% |
📈 Sales CAGR (3Y): 69%
💰 Profitability: Still fragile AF, but a major turnaround from blood-red FY22.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| Market Cap | ₹2,54,190 Cr |
| Stock Price | ₹263 |
| Book Value | ₹31.4 |
| P/E Ratio | 482x |
| P/B Ratio | 8.4x |
| ROE | 2.08% |
🧮 Fair Value Range:
- Assume FY26E EPS = ₹1.5 (optimistic)
- Assign reasonable growth P/E: 60–80x
- FV Range = ₹90 – ₹120
💥 At ₹263, you’re paying for vision, not version control.
5. 🍿 What’s Cooking – News, Triggers, Drama
🥗 Food delivery GOV grew 24% YoY in H1FY25
⚡ Blinkit scaling fast — but still a cash guzzler
🏃 CEO change at food delivery division (Jul 2025)
📦 Hyperpure expansion into 200+ cities
📈 Institutional buying: DIIs now at 23.5% (up from 2.6% in 2022)
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity Capital | ₹907 Cr |
| Reserves | ₹29,410 Cr |
| Borrowings | ₹2,045 Cr |
| Net Worth | ₹30,317 Cr |
| Total Assets | ₹35,623 Cr |
➡️ Debt is manageable.
🧾 Cash-rich balance sheet thanks to IPO + fundraises.
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF / Commentary |
|---|---|---|
| FY23 | ₹646 | First positive year |
| FY24 | ₹308 | Still holding up |
| FY25 | ₹308 | Steady, but not surplus |
Biggest risk? Scaling Blinkit without burning CFO.
8. 📐 Ratios – Sexy or Stressy?
| Ratio | FY25 | Verdict |
|---|---|---|
| ROCE | 3.18% | 😐 Early signs |
| ROE | 2.08% | Barely breathing |
| OPM | 3.15% | From -44% → +3% ✅ |
| P/E | 482x | 🚀 Outer orbit |
| Cash Conv. Cycle | -54 days | 🔥 Excellent |
Efficiency improving. But don’t expect Titan-style ratios here.
9. 📊 P&L Breakdown – Show Me the Money
- FY25 Revenue: ₹20,243 Cr
- EBITDA: ₹637 Cr
- PAT: ₹527 Cr
- Other Income: ₹1,077 Cr
- Core Op Profit = ₹527 – ₹1,077 = negative again?
📉 Still reliant on “other income” — not food margins.
10. 🧩 Peer Comparison – Who Else Is in the Game?
| Company | Revenue (₹ Cr) | Net Profit | P/E | OPM % | ROE % |
|---|---|---|---|---|---|
| Zomato (Eternal) | 20,243 | ₹527 Cr | 482 | 3.1% | 2.1% |
| Swiggy (unlisted) | 15,227 | -₹3,105 Cr | NA | -18% | -254% |
| Nykaa (FSN) | 7,950 | ₹66 Cr | 940 | 6% | 5.2% |
| Cartrade | 641 | ₹134 Cr | 67 | 23% | 6.2% |
📊 Eternal is the biggest and the most expensive, but also the only profitable among peers.
11. 🧪 Miscellaneous – Shareholding, Promoters
| Holder | Jun ’22 | Jun ’25 | Change |
|---|---|---|---|
| FIIs | 10% | 44.4% | 🔼 |
| DIIs | 2.6% | 23.5% | 🔼 |
| Public | 84.6% | 26.1% | 🔽 |
| Shareholders | 15.4 lakh | 27.9 lakh | 🔼 |
Big guns loaded in. Retail holding dropped as the smart money entered.
12. 🧑⚖️ EduInvesting Verdict™
Zomato/Eternal Ltd has pulled off what most startups only dream of:
✅ Top-line CAGR of 69%
✅ Turned profitable
✅ Strong brand equity
🚫 Still not generating strong core cash
🚫 Still trading at P/E 482x
📉 Fair Value Range: ₹90 – ₹120/share
(Current price: ₹263 = Hope + IPO nostalgia + FOMO)
If you’re eating momo while reading this, just know: you’re the product. Not the investor.
✍️ Written by Prashant | 📅 July 11, 2025
Tags: Eternal Ltd, Zomato, Blinkit, food delivery stocks, IPO darlings, high PE stocks, quick commerce India, Hyperpure, EduInvesting, startup to profit
