Eternal Share Price Plummets 5%; Top NIFTY50 Loser Today: What's Behind the Decline?

Eternal's stock experienced a significant downturn today, falling by 5% and becoming the top loser on the NIFTY50. This decline follows a period where the stock reached a 52-week high of ₹368.45 on the NSE on October 16, 2025, but has since fallen about 23% from that peak.

The primary catalyst for this sharp drop appears to be a note issued by the global investment firm UBS. Media reports, citing Informist, indicate that UBS pointed out that Swiggy gained ground on Eternal in the food delivery sector during November.

According to the UBS report, overall industry order volumes decreased by 5.3% from the previous month. Eternal's order volumes saw a decrease of 4.4%, while Swiggy's order volumes saw a slight increase of 0.1%. UBS believes Swiggy's relative success can be attributed to a lower average order value and the introduction of initiatives like Snacc, Bolt, and the 99 Store, which helped maintain order volumes. The report also noted that Eternal had outperformed Swiggy in the two months prior.

**Other Analyst Perspectives**

Despite the recent setback, a research note from Elara Capital, released on November 27, 2025, paints a positive long-term picture for Eternal. Elara Capital's analysts stated that India's e-commerce penetration, which stood at nearly 7% in CY24 (according to Redseer), is at a similar stage to what was observed in China and the US during the 2010s.

Elara Capital's analysis compared platform valuations across comparable maturity phases to determine if India's internet stocks, using Eternal as an example, reflect similar valuation multiples. They value Eternal based on growth-adjusted EV/sales.

The Elara Capital report concluded that Eternal continues to outperform global peers at a similar stage of development. Their valuation framework, using both growth-adjusted and DCF methods, arrives at a valuation close to ₹400 per share. The report emphasizes that global e-commerce markets are generally dominated by a few large-scale firms and that Eternal, with its leading position in its categories and the rapid expansion of Blinkit, is well-positioned to replicate this pattern, leading to sustained growth. They also noted that Eternal is at an inflection point, transitioning into a maturity phase (18-23 years into operations) similar to when Amazon shifted from scale to profitability, achieving 22.2% revenue growth (excluding AWS) and trading at a median 2.3x EV/Sales.

The analysts at Elara Capital estimate Eternal will report a 46% CAGR, leading to a growth-adjusted EV/sales that imputes at 4.9x FY28E EV/Sales. Their segmental DCF analysis indicates that the ask rates for key verticals remain consistent (adj. EBITDA of 4-5%) over a decade. They arrived at a valuation of $400 per share using a blended approach of key vertical DCF and growth-adjusted EV/sales, reiterating that "Eternal remains our valuation anchor for India’s consumer internet names."

**Jefferies' Downgrade Earlier This Year**

Back in January 2025, Jefferies downgraded Eternal's shares, citing the stock's significant rise in value throughout 2024 and growing concerns about increased competition in the quick commerce sector. News reports indicated that Jefferies analysts believed that after Eternal's shares more than doubled in 2024, 2025 might be a year of consolidation. While Jefferies acknowledged that the stock's valuations were not excessively high given its strong performance and market opportunity, they expressed concerns about the intensifying competition in the quick commerce space.