📈 Eternal Shares Jump
- Eternal (formerly Zomato Ltd) shares surged 3.97% to ₹243.45 on the BSE.
- Goldman Sachs has a ‘Buy’ rating with a target price of ₹310.
🔐 Foreign Shareholding Cap a Strategic Win
- Proposal to cap foreign shareholding at 49.5% seen as a major strategic positive for Blinkit.
- May lead to index outflows (MSCI, FTSE), but long-term gains outweigh short-term risks.
💸 Improved Margins for Blinkit
- Capping foreign ownership could boost Blinkit’s steady-state margins by 100 bps, thanks to savings from third-party seller commissions.
- Potential margin upside from Blinkit’s growing product range.
📊 Big Boost to Zomato’s Valuation
- These changes could result in 15–20% higher FY30E EBITDA for Blinkit.
- This translates to a ₹35 per share incremental value for Zomato.
💼 Strong Financials & Returns
- Zomato held $2.3 billion in cash as of December 2024.
- Estimated incremental ROCE >50% for Blinkit due to strategic changes.
📈 Earnings Per Share (EPS) Impact
- Scenario analysis shows EPS could rise ₹0.6 in FY27 and ₹1.2 in FY30, which is +17% and +9%, respectively.
- Every 50 bps shift in Blinkit’s EBITDA margin = ₹0.6 EPS change in FY30E for Zomato.
