Jefferies’ Surprise Portfolio Move Sends Eternal Shares Soaring and Catches Traders’ Attention
Eternal, the parent company of Zomato and quick-commerce platform Blinkit, grabbed Dalal Street’s spotlight after its shares surged as much as 10 percent intraday on February 3, briefly hitting the upper circuit. The trigger was a high-profile vote of confidence from global brokerage Jefferies, which added the stock to its India model portfolio.
The move injected fresh momentum into a stock that has seen mixed performance in recent months, and it quickly drew the attention of both institutional and retail traders hunting for near-term opportunities.
Eternal shares climbed to ₹299.90 in early trade before trimming gains, eventually closing over 2 percent higher at ₹278.50 apiece. The spike in volumes suggested strong participation from momentum traders and funds reacting to the Jefferies call.
Trade Deal Optimism and Foreign Flow Hopes Shape the Bullish Narrative
Jefferies linked its decision partly to improving macro sentiment after the India-US trade deal, which it believes reduces a key overhang for foreign investors.
According to the brokerage, India has been underweight in emerging-market portfolios and has seen about $34 billion in foreign portfolio investor (FPI) outflows over the past 16 months. Any improvement in trade visibility and currency stability could reverse that trend.
Jefferies noted that:
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Better trade clarity could support the rupee
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A stable rupee can attract foreign flows
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Global funds may reassess India exposure
This macro backdrop, combined with company-specific growth, made Eternal a preferred pick in the consumer-tech and internet space.
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Eternal Replaces a Defensive FMCG Name in Jefferies’ Portfolio
In a notable shift, Eternal replaced Godrej Consumer Products in Jefferies’ model portfolio. This swap signals a tilt from traditional defensive FMCG plays toward high-growth digital consumption stories.
Jefferies highlighted Eternal’s:
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Strong growth in quick commerce
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Improving margins in food delivery
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Expanding scale advantages
The brokerage effectively argued that Eternal’s growth trajectory now offers a more compelling risk-reward than slower-growing staples names.
A market participant tracking global broker flows said, “When a firm like Jefferies reshuffles its model portfolio, global funds take note. It often drives incremental flows into the stock.”
Recent Stock Performance Shows a Volatile but Recovering Trend
Despite the latest rally, Eternal’s longer-term performance has been uneven.
Performance snapshot:
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Up 9.5% in the past five days
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Down over 1% in one month
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Down around 9% in six months
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Nearly 2% lower in 2026 so far
This suggests the stock is attempting a rebound after a period of consolidation and correction.
At current levels, Eternal trades at a P/E ratio of 1,139.03 with a market capitalization of about ₹2.69 lakh crore, indicating that valuations remain rich and heavily growth-dependent.
For many investors, this makes execution and profitability trends critical.
Strong Q3 Numbers Add Fundamental Support to the Rally
The rally is not purely sentiment-driven. Eternal’s recent earnings offered fundamental backing.
In Q3 FY26, the company reported:
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Consolidated net profit of ₹102 crore
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73% YoY rise from ₹59 crore
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Revenue from operations at ₹16,315 crore
The numbers signaled improving operating leverage and better cost management, particularly in quick commerce, a segment where Blinkit has been scaling aggressively.
Investors tracking the sector say profitability in food delivery and quick commerce is a key milestone for internet platforms long criticized for cash burn.
Leadership Transition Adds Another Layer to the Story
The company is also navigating a leadership change. Founder Deepinder Goyal stepped down as CEO effective February 1, with Albinder Singh Dhindsa, former Blinkit CEO, taking over.
Leadership transitions in high-growth tech firms can create both uncertainty and optimism. In Eternal’s case, markets appear to be viewing Dhindsa’s appointment as continuity in the quick-commerce-led strategy.
Still, investors will watch closely for strategic shifts and execution consistency under the new leadership.
Here’s What Happened Today and Why Traders Reacted
Today’s price action was driven by a mix of global and company-specific triggers:
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Jefferies adding Eternal to its India model portfolio
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Optimism around India-US trade deal and FPI flows
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Strong recent quarterly results
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Momentum buying after early gains
Traders reacted swiftly because brokerage portfolio changes often act as catalysts for institutional flows. Once the stock neared upper circuit, short-term players chased the move, amplifying volatility.
What This Means for Investors and Their Portfolios
For investors, Eternal presents both opportunity and risk.
Potential positives:
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Improving profitability
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Strong positioning in quick commerce
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Global brokerage endorsement
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Possible FPI inflow tailwinds
Key risks:
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Premium valuation leaves little room for error
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Competitive intensity in food delivery and quick commerce
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Sensitivity to global risk sentiment
For growth-focused portfolios, Eternal remains a high-beta consumer-tech bet. For conservative investors, valuations may warrant caution.
Rally Reflects Confidence but Sustainability Will Be Tested
Eternal’s sharp move shows how quickly sentiment can shift when macro optimism meets positive brokerage action. However, sustaining the rally will likely depend on continued earnings delivery and margin improvement.
For now, the stock has regained trader interest and re-entered the conversation as a momentum play. Whether it becomes a longer-term compounder again will depend less on headlines and more on execution in the quarters ahead.
