Eternal Stock: Retail & MFs Buy Dips Despite 670X P/E; FIIs Exit

Retail investors and mutual funds are consistently increasing their stake in Eternal, a food delivery and quick commerce company, for the second consecutive quarter. This buying activity is occurring despite the stock trading at a very high P/E multiple of 670x and being 30% off its peak, indicating strong conviction in its future prospects.

This trend highlights a divergence in investor sentiment, with domestic participants (retail and MFs) showing strong belief in Eternal's growth story, while Foreign Institutional Investors (FIIs) are reducing their holdings. It underscores the growing influence of domestic money in supporting specific Indian growth stocks, even those with stretched valuations.

While no specific ticker is provided for 'Eternal', this news is positive for the company itself, suggesting continued demand for its shares. It also reflects a broader trend where Indian retail and mutual funds are willing to invest in high-growth, high-valuation companies in the e-commerce and food delivery space, potentially benefiting other listed players in similar sectors.

Traders should monitor Eternal's upcoming quarterly results for continued revenue growth and profitability improvements to justify its high valuation. Observe FII and DII activity for any shifts in their respective stances, as sustained FII selling could cap upside despite domestic buying. Also, watch for any regulatory changes impacting the food delivery and quick commerce sector.

• •Retail investors are adding Eternal shares on dips for the second consecutive quarter.
• •The stock trades at a 670X P/E ratio and is 30% off its peak.
• •Mutual funds are increasing their holdings in Eternal.
• •Foreign institutional investors (FIIs) are reducing their holdings.
• •Eternal has reported strong revenue growth and improved profitability.