Eternal Stock Performance Analyzed
Eternal (formerly Zomato) stock experienced a drop in value over the last two trading days, falling from ₹368.45 to ₹333.75. This happened after the company announced a significant decrease in its profit for the most recent quarter. The company reported a 65% drop in net profit to ₹65 crore, compared to ₹176 crore from the previous year.
Key Points
- Significant profit decline (65%) impacting investor confidence.
- Revenue jumped 183% year-over-year, showing growth potential.
- Strong cash reserves provide a financial advantage.
- Food delivery business is generating substantial cash flow.
- Stock testing key support levels around ₹338.
- Technical analysis suggests potential upside target of ₹391.
Despite the lower profit, the company’s strong financial position – particularly its large cash reserves – is a positive sign. This cash comes from their successful food delivery business, which is growing rapidly.
Technical analysts are watching the stock closely. It’s currently testing a crucial support level at around ₹338. If the price drops below this level, it could signal further losses.
The stock has shown a remarkable increase, rising over 82% in the last seven months. This rally suggests investors still believe in the company’s future potential. However, momentum oscillators indicate an overbought condition.
Potential price targets from technical analysis range from ₹391 to ₹338, depending on market conditions. Investors will be looking to the ₹369 high as a potential obstacle to the upward trend.
Important support levels to watch include ₹327, ₹318 and ₹300. Resistance levels are at ₹356 and ₹369.
The company’s ability to generate cash from its food delivery business is key to its future success.
