Case study

ETERNAL

Zomato

High-risk on the numbers
0Score

Zomato (ETERNAL) Stock Analysis & Case Study

Is ETERNAL a good buy? The data-driven verdict.

Zomato (ETERNAL) trades at ₹264,on the numbers it high-risk on the numbers, a Downstox Snapshot Score of 25/100.

On the numbers, Zomato (ETERNAL) high-risk on the numbers, a Downstox Snapshot Score of 25/100, weighing expensive at 695.0× earnings, ROE of 1.2%. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

The Downstox take on ETERNAL

Eternal is the textbook case of a market betting entirely on the future, with a P/E near 695 that says today's profit is almost an afterthought. ROE of 1.19% and ROCE of 2.97% confirm the business barely earns on the capital it holds, so the price is paying for a scale and margin story that has not shown up in the numbers yet. With a Piotroski score of 3 and zero dividend, the real question is whether operating leverage finally converts revenue into hard returns, or whether patience runs out first. Watch where incremental capital actually lands on returns.

Downstox editorial view, written by our own analysts. Information, not investment advice.

ETERNAL fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹2.55L Cr
Current price
₹264
P/E ratio
695.0×
P/B ratio
8.22×
Book value
₹32
ROCE
3.0%
ROE
1.2%
Piotroski F-Score
3/9

Is ETERNAL overvalued? ETERNAL P/E vs its sector

ETERNAL's P/E of 695.0× sits above the sector peer median of 15.9×, so on earnings it screens richer than peers.

ETERNAL P/E
695.0×
Peer median P/E
15.9×
Peer median yield
1.66%

The bull case for ETERNAL

  • Zomato is part of the nifty50 universe with live, tracked fundamentals on Downstox.

The bear case & risks

  • A rich 695.0× P/E leaves a thin margin of safety if growth slows.
  • A steep 8.2× price-to-book means most of the value is intangible/expectations, not assets on the books.
  • Return on equity is a soft 1.2%, capital efficiency trails higher-quality peers.
  • A low Piotroski F-Score of 3/9 flags weaker financial health this cycle, worth understanding why before committing.

ETERNAL Piotroski F-Score: 3/9, how financially strong is it?

3/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. ETERNAL scores 3/9,weak on the financial-strength checks.

ETERNAL MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy ETERNAL with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox32.6%3.1×
Zerodha27.8%3.6×
Groww27.8%3.6×
DhanCHEAPEST25.6%3.9×

Compare every broker on the ETERNAL MTF page.

ETERNAL vs peers,sector comparison

StockP/EDiv yieldMarket cap
ETERNAL (this stock)695.0×₹2.55L Cr
RELIANCE23.1×0.45%₹17.95L Cr
TCS14.7×3.01%₹7.69L Cr
HDFCBANK15.9×1.65%₹12.11L Cr
INFY14.4×4.51%₹4.32L Cr
ICICIBANK17.9×0.81%₹9.70L Cr
SBIN11.5×1.67%₹9.61L Cr

About Zomato: sector, index & market-cap context

Zomato (ETERNAL) is a large-cap NSE-listed company, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹2.55L Cr. See more Nifty 50 stocks.

How the ETERNAL Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Zomato's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

ETERNAL analysis, FAQs

Is Zomato (ETERNAL) a good buy?

On the numbers, Zomato (ETERNAL) high-risk on the numbers, a Downstox Snapshot Score of 25/100, weighing expensive at 695.0× earnings, ROE of 1.2%. This is a data snapshot for research, not investment advice.

Is ETERNAL overvalued or undervalued?

ETERNAL trades at 695.0× earnings versus a peer median of 15.9×, so it screens richer than its sector peers.

What is the bull case for ETERNAL?

Zomato is part of the nifty50 universe with live, tracked fundamentals on Downstox.

What are the risks in ETERNAL?

A rich 695.0× P/E leaves a thin margin of safety if growth slows. A steep 8.2× price-to-book means most of the value is intangible/expectations, not assets on the books. Return on equity is a soft 1.2%, capital efficiency trails higher-quality peers.

More on ETERNAL