Eternal: From Turnaround to Trend – Is ₹350+ the Next Stop?

Eternal (ETERNAL) has been on a remarkable journey, transforming its financials and catching the eye of institutional investors. Despite a slight dip today, its impressive growth and unique shareholding structure raise a critical question: Is this just the beginning, or has the market overvalued its potential? Let's dive in.

Current Snapshot:

Price: ₹306.55 (-0.24% today)

Market Cap: ₹2,95,832 Cr (Significant player)

Key Question: Sustained growth phase or overbought?

Shareholding Insights (June 2025):
A truly unique aspect is Eternal's 0% promoter holding, suggesting a professionally managed entity driven by big money.

FIIs: Dominant 42.34% (Strong international confidence)

DIIs: Substantial 26.59%

Public: 7.04%

Others: 24.04%

Implication: Stock movements heavily influenced by large fund flows.

Financial Turnaround - A Glimpse:
Eternal's recent financial performance shows a significant shift:

Sales: Surged from ₹12,114 Cr (Mar 2024) to ₹20,243 Cr (Mar 2025)

Operating Profit: Exponential leap from ₹42 Cr to ₹637 Cr

OPM%: Jumped from 0% to 3%

Net Profit: Rose from ₹351 Cr to ₹527 Cr

Cash Flow (Mar 2025): Healthy ₹357 Cr (vs. ₹91 Cr in Mar 2024)

Investing Activities: ₹-7,993 Cr (Mar 2025) vs. ₹-348 Cr (Mar 2024) - Suggests significant capital deployment for future growth.

Balance Sheet Strengthening: Reserves & Surplus, and Total Assets showing strong growth.

Valuation & Returns:

P/E Ratio: Not listed (implies negative earnings or non-traditional valuation)

Dividend Yield: 0%

Market Focus: Valuation likely based on future growth prospects & asset play.

Investment Returns: +2.25% (last week), +35.11% (last year) - Strong positive sentiment.

Delivery Volume - Accumulation in Progress?
Monthly delivery data points to high investor interest and potential accumulation:

July 2025: +16.34% price gain, 45.10% delivery

June 2025: +10.84% price gain, 54.30% delivery

April 2025: +15.28% price gain, 46.48% delivery

March 2025: -9.19% price dip, but high 57.29% delivery.

Interpretation: Consistent high delivery suggests long-term holding, indicating strong underlying demand.

Technical Outlook - Bullish Momentum:
Eternal's recent price action, especially the gains in April, June, and July, combined with high delivery percentages, signals strong bullish momentum.

Current Price: ₹306.55

Uptrend: Consistent positive monthly returns (except March and January).

Technical Health: High delivery volume alongside price appreciation is a very healthy sign, indicating conviction behind the moves.

Potential Target: From a technical perspective, Eternal looks very strong and appears to have the potential to reach ₹350+ soon.

Real Talk: Navigating the Growth Story

For Traders:
This looks like a classic momentum play. Riding the trend with disciplined trailing stop losses will be key. Keep an eye on delivery percentages – a significant drop alongside price dips could signal a shift in institutional sentiment.

For Investors:
The turnaround story and strong institutional backing are compelling. However, the 0% promoter holding means external forces (FII/DII sentiment) will heavily dictate its trajectory. Long-term investors should dig deeper into the business model and future growth drivers. Given the strong technical indicators pointing towards ₹350+, this could be an attractive entry point for those who believe in the broader growth narrative.

Your thoughts? Would you jump into this high-momentum, institutionally-driven growth story, anticipating the suggested technical upside, or wait for more traditional valuation metrics to emerge?