Shares of food delivery giant Eternal rose 3% to Rs 291 on the BSE on Thursday after it reported a consolidated profit of Rs 87 crore for the first quarter of FY27, marking an 11% decline from Rs 98 crore posted in the same period last year. The net profit is attributable to the owners of the parent company.

The company’s revenue from operations came in at Rs 20,211 crore, a massive 182% jump from Rs 7,167 crore reported in the corresponding quarter of the previous financial year, Eternal said in a regulatory filing.

On a sequential basis, net profit declined 47% from Rs 174 crore posted in the previous quarter. Revenue from operations, on the other hand, rose 17% from Rs 17,292 crore, according to the company’s exchange filing.

Eternal shares: Buy, sell or hold?

JPMorgan maintained its Overweight rating on Eternal with a target price of Rs 390 (38% upside), calling the quarter strong but broadly in line with expectations, with growth accelerating across quick commerce, food delivery and District.CLSA retained its High Conviction Outperform rating on Eternal with a target price of Rs 506 (79% upside), saying the company’s Q1FY27 results reinforced its view of strong execution. Both quick commerce and food delivery posted faster growth, while profitability improved despite elevated competition.

Blinkit reported faster NOV growth along with greater confidence in profitability and cash generation. Zomato‘s growth accelerated to its fastest pace in six quarters, with limited impact from emerging no-commission platforms. Meanwhile, newer businesses such as District and Bistro continued to expand the ecosystem and drive customer engagement.
Jefferies maintained its Buy rating on Eternal with a target price of Rs 415, saying the first quarter reinforced the importance of quality growth over simply chasing market share. Food delivery growth accelerated alongside better-than-expected profitability, while quick commerce performance remained strong despite falling short of optimistic forecasts. The key takeaway for the brokerage was management’s growing confidence that competitive intensity in quick commerce has become more predictable and that value-led food delivery is unsustainable.
Blinkit does not favour a short-term discounting strategy, and management indicated it is comfortable with the broader market growing faster as a result.
Nomura retained its Buy rating on Eternal with a target price of Rs 350, implying a 24% upside, citing improving quick commerce profitability despite intense competition. Blinkit added 200 stores during the quarter, taking its total store count to 2,443. Management expects margins to continue improving, with competitive intensity having peaked in Q1FY27 and becoming more predictable.

Eternal now expects Blinkit’s steady-state EBITDA margin to reach 6% of NOV, compared with its earlier estimate of 5-6%, driven by efficiencies from larger stores and warehouses, deeper assortments, and better working capital management. The company expects net working capital days to decline from 18 to 12 in the steady state. Nomura forecasts 57-74% year-on-year NOV growth and adjusted EBITDA margins of 0.9-2% in FY27-28F.

Also read: Will Blinkit growth sustain amid competition? 5 things to know from Eternal’s shareholder letter

Motilal Oswal maintained its positive view on Eternal with a target price of Rs 400, implying a 41% upside. Management guided towards the higher end of its long-term margin range, with a reported EBIT margin of around 4% and an adjusted EBITDA margin of around 6%, compared with its earlier guidance range of 5-6%.

This came despite the recent increase in take rates not yet translating into contribution margin gains, which management attributed to minimum wage hikes across several states and the opening of larger stores. With the business model now established and competition becoming more predictable, management expects structurally higher margins going forward.

Motilal Oswal noted that continued elevated competition could affect near-term gains but viewed the guidance upgrade positively. The brokerage said management’s long-term target of 60% NOV growth and an EBITDA target of USD 1 billion by FY29 appear increasingly achievable, with its estimates continuing to factor in this long-term trajectory.

Emkay retained its Buy rating on Eternal and raised its target price by 8.1% to Rs 400 from Rs 370 after the company’s Q1FY27 results exceeded expectations. Emkay expects competitive intensity to remain elevated during the upcoming festive season but said Blinkit has demonstrated its ability to retain market share while maintaining profitability. The brokerage raised its FY27E and FY28E quick commerce NOV estimates by 5.4% and 8%, respectively, citing strong growth momentum. It retained its positive view based on Eternal’s strong execution in quick commerce, steady food delivery momentum, and adequate cash reserves.

Read more:Eternal Q1 Results: Cons PAT skyrockets 268% YoY to Rs 92 crore; revenue zooms 182%

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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SYDNEY — Shares of Commonwealth Bank of Australia climbed Thursday, tracking gains across the country’s major lenders as the broader Australian stock market advanced on the back of strong overnight earnings from U.S. technology giant Alphabet.

CBA shares traded at $173.60 as of Thursday’s session, up $1.91, or 1.11%, on the day. The gain builds on a modest advance in the previous session, when the stock closed at $171.69, and comes as Australia’s benchmark S&P/ASX 200 index climbed 0.72% to near 8,886 points, with financial stocks among the sectors contributing to the day’s broader rally.

A stock near the upper end of its yearly range

Thursday’s gain puts CBA shares within reach of recent highs after a period of relative softness earlier this month. The stock’s 52-week trading range spans from $149.76 to $185.59, meaning current levels sit comfortably in the upper half of that band, even as the stock remains below its yearly peak. CBA’s market capitalization currently stands at approximately $285.08 billion, making it one of the largest companies listed on the Australian Securities Exchange by that measure.

The stock’s recent trajectory has been choppy. According to market reports over the past several weeks, CBA shares have moved between roughly $156 and $164 on a number of individual trading days amid what analysts described as mixed sentiment across the broader banking sector, tied in part to uncertainty around interest rate settings and regulatory scrutiny. Thursday’s advance to $173.60 marks a notable recovery from those levels.

Australia’s largest bank

Founded in 1911 and headquartered in Sydney, Commonwealth Bank of Australia is the country’s largest bank by market value, with operations spanning retail, business and institutional banking across Australia, New Zealand and parts of Asia. The bank’s core offerings include savings and transaction accounts, home loans, credit cards, personal and business lending, insurance products, and equity trading and capital markets services, delivered through its main divisions of Retail Banking Services, Business Banking, Institutional Banking and Markets, and its New Zealand subsidiary, ASB.

Dividend profile

CBA remains one of the ASX’s most closely watched dividend payers, particularly among income-focused investors. The bank most recently paid an interim dividend of $2.35 per share for the six months ended Dec. 31, 2025, with an ex-dividend date of Feb. 18 and a payment date of March 30. Its next dividend, expected at $2.60 per share, carries an ex-dividend date of Aug. 19 and a payment date of Sept. 29, in line with the bank’s typical pattern of announcing dividends alongside its half-year results in February and full-year results in August.

On a trailing basis, CBA’s dividend yield currently sits at roughly 2.9%, with the bank having raised its dividend for five consecutive years and posted average dividend growth of just over 8% annually over the past three years, according to dividend-tracking services.

Why banks moved higher Thursday

CBA’s gain came as part of a broader lift across Australia’s major banking stocks, which factored into Thursday’s advance for the ASX 200 alongside strength in mining and energy names. The rally followed a stronger-than-expected overnight earnings report from Alphabet, which posted a broad beat on both revenue and cloud segment growth, helping to lift risk appetite across global equity markets, including in sectors such as banking that are more closely tied to overall economic sentiment than to the technology earnings themselves.

Separately, fresh domestic economic data released Thursday showed Australia’s unemployment rate holding steady at 4.4%, even as jobs growth for the month came in well above expectations, offering another data point supporting a generally upbeat tone in local markets during Thursday’s session.

Analyst views on valuation

CBA’s share price has drawn ongoing debate among analysts and investment commentators about whether the stock represents good value at current levels. Using a dividend-based valuation approach with an adjusted annual dividend of $4.76 per share, one recent analysis put the bank’s estimated fair value at just over $100 per share, a figure notably below the stock’s current trading price, reflecting a common tension among analysts between CBA’s consistent operating performance and what some view as a premium valuation relative to its earnings and dividend yield.

Morningstar has described CBA’s well-managed net interest margins, sound asset quality and strong balance sheet as continuing to support solid financial results, while cautioning that increased regulatory, political and public scrutiny could, over time, erode the bank’s pricing power and its economic moat. The bank currently trades at a normalized price-to-earnings ratio of roughly 26.3 and a price-to-sales ratio of about 9.7, according to Morningstar data, metrics that place CBA among the more richly valued major banks globally.

CBA is expected to release its full-year results in August, a report that will offer investors a clearer picture of the bank’s overall performance for the 12 months through June, along with confirmation of its previously flagged final dividend of $2.60 per share. Until then, the stock’s near-term direction is likely to remain closely tied to broader market sentiment, movements in the Reserve Bank of Australia’s interest rate settings, and the performance of Australia’s other major lenders, including ANZ, Westpac and National Australia Bank, all of which factor into how investors assess the health of the country’s banking sector as a whole.

For now, Thursday’s 1.11% gain leaves CBA trading well above its 52-week low and within a stone’s throw of its record highs, underscoring the stock’s continued status as one of the most closely watched, and most debated, names on the Australian share market.

More than 300,000 empty lots listed for sale could help reduce America’s housing shortage, according to new research from Zillow.

The real estate company said 300,242 empty lots of five acres or fewer were listed for sale on Zillow in June, accounting for 17.4% of all for-sale listings.

Building one home on each lot would reduce the estimated national housing deficit from 4.7 million homes to about 4.44 million, a decline of 6.3%, Zillow said.

The typical lot for sale is 0.57 acres and has a median price of $79,000. Zillow said many of the parcels may be large enough to support more than one home, making its estimate conservative.

STARTER HOME AFFORDABILITY IS CRAWLING BACK. THESE REGIONS ARE BEST FOR FIRST-TIME HOME BUYERS

“The more than 300,000 lots currently listed for sale represent the lowest-hanging fruit in addressing a housing shortage that’s two decades in the making,” Zillow Senior Economist Kara Ng said.

Ng said loosening zoning rules, streamlining permitting and expanding access to financing could reduce the cost and uncertainty associated with construction.

WHY HOMEBUYERS ARE RACING TO THIS PENNSYLVANIA PORT CITY

Florida had the most empty lots listed for sale, with 42,601, followed by Texas with 40,907, California with 18,508, North Carolina with 14,226 and Georgia with 10,334.

Empty lots made up the largest share of for-sale listings in North Dakota, at 45.9%, followed by South Dakota at 38.7% and Alaska at 34.6%.

Rural markets had the highest concentration of empty lots, accounting for 25.3% of listings, compared with 13.6% in suburban areas and 9% in urban markets.

MORTGAGE RATES JUMP TO HIGHEST LEVEL IN ALMOST A YEAR

Rural lots were also the least expensive on a per-acre basis, with a median of about $75,000 per acre. That compares with more than $181,000 per acre in suburban areas and approximately $500,000 per acre in urban areas.

Zillow said expanding access to manufactured homes could also help address the shortage because they can be built faster and at a lower cost than traditional site-built homes.

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The company is participating in a 12-week federal technology initiative with the U.S. Census Bureau’s Opportunity Project focused on increasing access to small-dollar housing loans in rural communities and reducing barriers for buyers interested in purchasing and building on empty lots.

Shares of Dr Reddy’s tanked 9% to Rs 1,080 on the BSE on Thursday after the company announced a weak set of numbers with profitability and revenue both dipping in the first quarter of the financial year 2027.

The company’s net profit was Rs 443 crore, marking a sharp 69% plunge for the quarter under review, while revenue from operations stood at Rs 8,071 crore, a 6% decline from the corresponding quarter of the previous financial year.

Dr Reddy’s said that the company faced a semaglutide API-related impact of Rs 240 crore, including inventory provisions and other associated costs. EBITDA margin was further affected by higher solvent and freight costs arising from the Middle East conflict. Reported RoCE stood at 5.3%, while RoCE excluding the semaglutide API impact was 8%. The company had a net cash surplus of Rs 3,058 crore.

Also read: Dr Reddy’s aims to resume semaglutide supply by November after API fix

Should you sell Dr Reddy’s shares?

Motilal Oswal maintained its Neutral rating on Dr Reddy’s with a target price of Rs 1,121, implying 5% downside. The brokerage cut its earnings estimates by 2% for FY27 and 3% for FY28, factoring in higher operating expenses due to the Middle East conflict and moderate growth in the PSAI segment.
It expects earnings to decline in FY27 and recover from FY28, given the ongoing work to resolve the Semaglutide-related regulatory issue, commercial benefits from b-abatacept expected from 4QFY27 onward and a high FY26 base. Motilal Oswal values Dr Reddy’s at 20x 12-month forward earnings and said its Neutral stance reflects the company’s earnings trajectory and current valuations.

Systematix maintained its Hold rating on Dr Reddy’s with a target price of Rs 1,183, saying the quarter was materially weaker than expected. North America revenue was significantly below estimates as the company recorded no generic semaglutide supplies during the quarter, while all other business segments performed broadly in line with expectations. Adjusted for one-offs and including other income, EBITDA stood at Rs 10.9 billion, with a 13.5% margin, which was meaningfully below the brokerage’s expectations.
Read more: Dr Reddy’s flags quality issue in semaglutide batches, delays commercial supplies
Dolat Capital downgraded Dr Reddy’s to Reduce from Buy and revised its target price to Rs 1,246, implying 5% downside, after Q1FY27 earnings came in below estimates even after adjusting for the Semaglutide-related inventory provision. The brokerage said the base business margin was lower than expected. Dolat Capital cut its FY27E and FY28E EPS estimates by 25.7% and 18%, respectively, factoring in lower Semaglutide sales, with management guiding for 6-7 million pens compared with 12 million earlier, along with lower-than-expected base business margins. The revised target price is based on 23x FY28E EPS.
During the quarter, the company received a Form 483 with seven observations following a pre-approval inspection at its biologics facility in Bachupally in June 2026 and responded within the stipulated timeline. It also said certain batches of Semaglutide were found to be out of specification due to an issue associated with the API.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)