Eternal (ETERNAL)

FairStock Score: 50/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is asking ₹318.50 for Eternal, valuing the firm at ₹2.93 lakh Cr, while the latest quarter delivered only ₹102 Cr net profit on ₹16,315 Cr sales. That is a P/E of 707.78 and EV/EBITDA of 721.40—prices that leave no room for error. Sales growth is impressive: 40.21% and five-year revenue CAGR 50.69%. The business may be building scale. But profit growth is -2.82%, ROE is merely 0.75%, ROCE 2.66%, and free cash flow is -₹7,685 Cr. A wonderful business should eventually produce owner earnings; right now Eternal consumes cash. Balance sheet has some comfort: debt/equity 0.15 and current ratio 3.08, Altman Z 21.80, Piotroski 8/9. But zero promoter holding and no dividend are not classic margin-of-safety features. Graham Number is ₹13.40 versus ₹318.50, a negative margin of safety of -1737.57%. Book value ₹33.83 and P/B 9.41 show price depends on future profits, not assets. PEG 43.27 confirms growth is no bargain at this price. Could it be a moat? Maybe network effects in e-retail, but the figures don't yet prove pricing power or durable earnings. The 52-week range ₹212.60–₹368.45 shows volatility. FairStock score 50/100 mixed. I would watch cash flow, profit conversion, and competitive intensity. I prefer to buy good businesses at fair prices; here the odds are speculative. Until net profit and FCF turn durable, I’ll remain on the sidelines.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer