Price & Technical Structure
- The stock has shown positive returns over the last 1 month (8.68%) and 3 months (12.11%).
- The price is trading above the 50-day EMA (4.3% above) and is 4.91% above the 50-day DMA, indicating a neutral to positive trend alignment.
- Momentum is strong, with RSI at 60.8 and a bullish MACD crossover observed.
- The price is positioned at 90.72% of the Bollinger Band width, nearing the upper band, with annualized volatility at 32.34%.
- The stock is trading 25.84% below its 52-week high and has experienced a current drawdown of -25.84%.
The stock exhibits a mixed but leaning positive technical profile. Short-term returns are strong, and momentum indicators like RSI and MACD suggest upward pressure. While the price is approaching the upper Bollinger Band and is significantly off its 52-week high, its position relative to EMAs and DMAs indicates a neutral to positive trend. Volume signals do not strongly support conviction at this time.
Weekly Momentum
- The stock price increased by 8.47% this week, driven by positive technical momentum and analyst sentiment.
- Technical indicators show strengthening upward momentum with a bullish MACD crossover and an RSI at 62.19.
- Despite a reduction in FII stake over eight consecutive quarters, an analyst expressed a preference for Eternal due to its growth prospects.
- The company's recent quarterly results showed significant year-over-year growth in revenue and net profit.
- A GST demand order of
6.49 crore was issued by Andhra Pradesh authorities, for which the company plans to file an appeal.
Eternal's stock experienced a strong positive week, driven by improving technical indicators and positive analyst commentary. The recent strong quarterly results provide fundamental support, although a GST demand order introduces a minor regulatory overhang. The stock is showing signs of a trend reversal, moving above key moving averages with strengthening momentum.
Quarterly Analysis
Revenue surged by 196.0% year-over-year to ₹17,292 Crores, indicating strong top-line expansion driven by segment performance.
Net Profit rose significantly by 346.0% year-over-year to ₹174 Crores, showing substantial growth in profitability.
Expenses increased by 185.0% year-over-year to ₹17,406 Crores, outpacing revenue growth and signaling cost pressures.
Cash and Cash Equivalents grew by 49.5% year-over-year to ₹996 Crores, reflecting an improved liquidity position.
The company experienced robust year-over-year revenue and net profit growth, driven by strong segment performance. However, this was accompanied by significant cost pressures, as expenses rose at a faster pace than revenue year-over-year, impacting overall profitability margins.
Eternal Ltd reported substantial year-over-year growth in its top line for FY26 Q4. Revenue reached ₹17,292 Crores, a significant increase of 196.0% compared to the same quarter last year. This growth was also observed on a sequential basis, with Revenue increasing by 5.99% from the previous quarter. The Quick commerce segment was a major contributor, generating ₹13,232 Crores in revenue for the quarter.
Despite the strong revenue performance, expenses also saw a considerable rise. Total Expenses for the quarter were ₹17,406 Crores, an increase of 185.0% compared to the same quarter last year. This rise in expenses outpaced revenue growth on a year-over-year basis, indicating cost pressures. Sequentially, expenses increased by 5.54%. This dynamic of expenses rising faster than revenue year-over-year suggests that current performance is being impacted by increasing operational costs.
Net Profit for the quarter was ₹174 Crores, a substantial increase of 346.0% year-over-year. This profit growth was also evident sequentially, with a 70.6% increase from the previous quarter. However, the significant increase in expenses, particularly the Cost of Materials Consumed which increased by 160.0% sequentially, and Finance Costs which increased by 136.0% year-over-year, highlights the cost pressures impacting overall profitability margins.