Eternal, the parent company of Zomato and Blinkit, has been steadily climbing since late October, scaling multiple record highs. The latest milestone came in Wednesday's trade, when the stock touched ₹372, surpassing its previous peak of ₹365.70.
The latest rally has lifted Eternal's year-to-date gains to 30%, while investors who have held the stock since its IPO in 2021 have enjoyed significantly higher returns. From its IPO price of ₹76 per share, the stock has surged 375% as of Wednesday's close of ₹361, making it one of the biggest multibagger IPOs in recent years.
The company's strong execution in the quick-commerce business and improving profitability, despite intensifying competition in the industry, have encouraged investors to accumulate the stock, even as some analysts have cautioned against its expensive valuations.
Eternal, formerly known as Zomato, made a strong debut on the stock exchanges in 2021, listing at a premium of more than 52% over its IPO price at ₹116 apiece.
Although the rally faced a setback in 2022, with the stock ending the year down 57%, it managed to recover those losses in the subsequent period, delivering multibagger returns over the following two years.