Eternal (Zomato) – 5-Wave Rally Meets a Reality Check

Eternal (Zomato) appears to have completed a clean 5-wave impulse from ₹194 → ₹368.45 and is now shifting into a corrective phase.

Technical Setup:
Wave A is unfolding with price slipping below the 100DMA. A temporary Wave B rebound toward ₹320–₹325 could precede another decline toward ₹281–₹261 — aligning with 0.5–0.618 retracement levels.
The corrective bias holds unless ₹368.45 is decisively reclaimed.

Fundamental Snapshot:
The FY25 data shows revenue growth of 67% YoY, reaching ₹202.4B — impressive, but free cash flow plunged 82%, and long-term debt has been fully paid off. Despite a market cap near ₹2.94T, the P/E ratio remains sky-high (~1474), hinting at over-optimism.
That combo — stretched valuation + slowing FCF momentum — supports the case for a technical pullback before the next sustained trend resumes.


Trade View:
Short-term corrective tone stays intact. Watch ₹320–₹325 for a possible lower high; deeper retracement likely toward ₹280–₹260 zone.

Invalidation: ₹368.45

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.