Eternal: Analyst Sees Leadership Uncertainty Weighing on Stock Despite Margin Improvement
Eternal
**Sentiment & Market Reaction**
Eternal is expected to **open lower** following an unexpected leadership shift. While the sudden management change drives negative sentiment, the company has demonstrated **sequential margin improvement**.
**Financial Performance**
The reported Profit After Tax (PAT) has **missed estimates**. High operational costs continue to weigh on the balance sheet, specifically within the quick commerce division where cash burn remains **high**. Projections for Blinkit achieving EBITDA breakeven are viewed as **premature** at this stage.
**Strategic Outlook**
Current volatility presents a **short-term trading opportunity**. However, the long-term outlook remains **cautious** due to stretched valuations. The competitive landscape in India is intensifying, with aggressive pressure from **Amazon**, **Flipkart**, and **Swiggy**.