Eternal Shares Rise On MSCI Inclusion Hopes
Shares of Eternal Ltd. rose to 3% on Tuesday with the stock trading at Rs 294.63 apiece. The surge in Eternal shares came after the company released its latest shareholding pattern yesterday evening, which showed that foreign room has now crossed the 25% threshold, making the stock eligible for full MSCI weight.
This development is significant for Indian investors as it could lead to increased investment in the company. Analysts anticipate that this change will be reflected in MSCI’s February review, which could trigger passive inflows of $390 million approximately. This might help strengthen the stock’s position further in global portfolios.
Eternal’s Business Operations
Eternal is the parent entity of Zomato and Blinkit. The company has been in the news recently for receiving two Goods and Services Tax (GST) demand orders amounting to over Rs 27.56 crore, including interest and penalty.
The orders passed by the Additional Commissioner of State Tax (Appeals), West Bengal, have been received with respect to short payment of output tax for the period between April 2020 and March 2022. This development has raised concerns among Indian traders and investors, who are closely watching the company’s financials and regulatory compliance.
Eternal Share Price Today
The scrip rose as much as 4.22% to Rs 297 apiece during the day, compared to a 0.03% decline in the NSE Nifty 50 Index. Total traded volume so far in the day stood at 26.32 times its 30-day average. The relative strength index was at 33.57.
Out of 33 analysts tracking the company, 29 maintain a ‘buy’ rating, and none are maintaining a ‘hold’ rating, while four are maintaining a ‘sell’ rating, according to Bloomberg data. The average 12-month consensus price target of Rs 379.16 implies an upside of 29.5%.
What This Means For Indian Investors
The likely inclusion of Eternal Ltd. in the MSCI index is a significant development for Indian investors. It could lead to increased investment in the company, which could have a positive impact on the stock price. However, investors should also be aware of the potential risks and challenges faced by the company, including regulatory compliance and competition in the market.
To stay ahead of the curve, Indian investors should keep a close eye on the company’s financials, regulatory compliance, and market trends. They should also consider consulting with financial advisors or experts to make informed investment decisions.
Conclusion
In conclusion, the surge in Eternal Ltd. shares on Tuesday is a significant development for Indian investors. The likely inclusion of the company in the MSCI index could lead to increased investment and a positive impact on the stock price. However, investors should also be aware of the potential risks and challenges faced by the company and stay informed to make smart investment decisions.
