Eternal shares: JM Financial sees 15% upside, bullish on Blinkit, Zomato; here's why - BusinessToday

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  Published in Business and Finance on Thursday, October 9th 2025 at 3:18 GMT by Business Today

Eternal Shares and JM Financial Forecast a 15 % Upside for Blinkit and Zomato – Here’s Why

A joint research note from Eternal Shares and JM Financial, published on Business Today on 9 October 2025, highlights a bullish view on two of India’s leading food‑tech and grocery‑delivery stocks: Blinkit (formerly Big Basket’s delivery arm) and Zomato. Both firms have shown strong momentum in 2025, and the analysts argue that the market has not yet fully priced in a number of growth catalysts, leading to a 15 % upside on each share.

1. Blinkit – a “Grocery‑Delivery Super‑App” on the Rise

Valuation Gap
Blinkit is currently trading around ₹1,150 per share, while Eternal Shares’ model values the stock at ₹1,325, implying a 15 % upside. The company has already reduced its operating loss from ₹400 cr in Q4‑24 to a breakeven point in FY‑26, thanks to a steep rise in average order value (AOV) and an expanding “last‑mile” network.

Key Drivers

Risk Factors
Eternal Shares notes that Blinkit’s margins could be pressured if it continues to subsidise high‑frequency deliveries, and that regulatory scrutiny around “last‑mile” operations in tier‑2 cities may add compliance costs.

2. Zomato – Food‑Delivery Re‑imagined

Valuation Gap
Zomato’s shares trade at ₹1,780, whereas JM Financial’s valuation sits at ₹2,045, pointing to a 15 % upside. The company’s FY‑25 results, which are expected to show a 32 % increase in GMV, provide a strong foundation for the projection.

Key Drivers

Risk Factors
JM Financial warns that aggressive discounting to capture market share in new geographies could erode margins, and that increasing regulatory scrutiny over data privacy may impact Zomato’s data‑driven pricing models.

3. Macro & Sector Context

Both analysts note that India’s grocery‑delivery and food‑tech markets are projected to grow at 17 % CAGR over the next three years, driven by:

• Urbanisation and digital penetration – 70 % of metro households are now online shoppers.
• Consumer preference shift – 45 % of consumers prefer “delivery‑to‑home” over restaurant pickups.
• Capital availability – Venture capital has poured $5 bn into the sector in 2024 alone.

These macro trends underpin the analysts’ confidence that Blinkit and Zomato will sustain revenue and margin expansion.

4. Bottom‑Line Takeaway

Both analysts emphasize that the upside is contingent on the companies’ ability to convert growth into profitability, maintain cost discipline, and navigate regulatory landscapes. They advise investors to monitor quarterly updates for signs of margin pressure or supply‑chain bottlenecks.

5. How to Stay Updated

• Company Filings – Both Blinkit and Zomato file quarterly earnings on the NSE website; analysts typically review these for margin and cash‑flow trends.
• Industry Reports – Business Today regularly links to reports from NASSCOM and McKinsey that provide broader market data.
• Analyst Calls – Listening to earnings call transcripts can offer insights into management’s confidence in expansion plans.

Conclusion

The joint analysis from Eternal Shares and JM Financial paints an optimistic picture for Blinkit and Zomato, underscoring a 15 % upside for both stocks. Their arguments hinge on expanding market share, operational efficiencies, and new revenue streams that align with India’s broader shift toward digital grocery and food‑delivery services. As always, investors should weigh these bullish projections against the risk factors highlighted, and remain vigilant for any shifts in the regulatory or competitive environment that could impact the outlook.