Leadership jitters, valuation concerns weigh on Eternal even as consumption shows green shoots

Shares of Eternal are facing pressure because investors are‍ worried about changes in leadership. Even though people are still optimistic about quick commerce,the market is rethinking how much the company is worth. The stock had risen quickly due to ⁢growth expectations, but it⁢ has now fallen⁢ sharply, leading to ⁤discussions about whether the price has dropped enough.

Market expert Sandip Sabharwal explained on ET⁣ Now that the recent “Deepinder ‍Goyal shock” could settle, drawing comparisons to similar situations with other companies.

“This reminds me⁢ of when Elon Musk stepped back from Tesla to work with President Trump. The stock price dropped significantly⁤ as leadership is critically important. If a leader’s focus shifts to other things, investors get ⁤worried. We’ll have to see if the stock continues to fall and if that leads to changes or other developments,” sabharwal said.

He ⁣noted that the recent drop happened even after positive⁢ reports following the⁢ company’s earnings release.

“After the earnings were announced, analysts were very positive and most increased their earnings forecasts.⁣ Despite this, the stock price fell sharply. I still don’t think the earnings justify the current valuation. The stock isn’t cheap, ‍but the main reason for this correction is the change in CEO,” he added.

Quick ⁤commerce has been a major factor in Eternal’s valuation, with investors expecting strong growth in the coming months. However, Sabharwal cautioned that