📊 Eternal (Zomato/Blinkit) Stock Valuation Breakdown 📉 *Profit Plunge YoY (Last 4 Quarters) 😱* - Q2FY26: 📉 63% down - Q1FY26: 📉 90% down - Q4FY25: 📉 78% down - Q3FY25: 📉 57% down ⚠ Eternal might just be the poster child of an Indian market crash (if it happens)! 😬 *How to Value the Stock? 🤔* Sales are 🚀, but profits are 🪫. What's the deal? *Sales Growth YoY (Last 4 Quarters) 📈* - Blinkit: 🛵 120% up YoY - Zomato: 🍽 14% up YoY *Profit Decline YoY (Blinkit + Zomato) 💸* - Dec '23: ₹138 cr ➡ Dec '24: ₹59 cr - Mar '24: ₹175 cr ➡ Mar '25: ₹39 cr - Jun '24: ₹253 cr ➡ Jun '25: ₹25 cr - Sep '24: ₹176 cr ➡ Sep '25: ₹65 cr *Scale Achieved? ✅* Q2FY26: Eternal's quarterly profit is just ₹65 cr (combined) despite Blinkit’s massive ₹11,679 cr sales! 😲 *Zero Operating Leverage? ⚙* Operating leverage = 📈 sales, stable fixed costs, expanding net margins. But Blinkit? 🤷‍♂ - Gross Margin stuck at ~23.5% for 5 quarters, despite 120% YoY sales growth. 😐 - Net Loss barely budged: ₹162 cr (Jun) to ₹156 cr (Sep). 😕 *Blinkit Dark Stores 🏪* - Sep '24: 791 stores - Sep '25: 1,816 stores - Dec '25: 2,100 stores (projected) - Mar '27: 3,000 stores (projected) *Quick Math 📝* - Sep '25: 1,800 stores = ₹65 cr profit - Mar '27: 3,000 stores = ~₹110 cr profit (linear estimate) 💡 Investors guess future earnings to value stocks. But what’s Eternal’s future? 🤔 *From Eternal’s Q2 Shareholder Letter ✉* “We’re passing efficiency gains to customers.” *Translation 🔍* - Can’t raise prices. 🚫💰 - Kirana shops are still kicking! 🏬 - Jio dark stores are looming. 😈 *Conclusion 🎯* 1. For a P/E ratio of 50 at current market cap, Eternal needs ₹5,000 cr annual profit. 💵 2. To double shareholder money in 5 years (P/E 50), profit must hit ₹10,000 cr. 📈 3. Our FY2027 profit projection: ~₹440 cr (4 x ₹110 cr). 😬