Check Before You Invest : Eternal Ltd

BSE: 543320 NSE: ETERNAL ISIN: INE758T01015

| Sector: Retail | Industry: e-Commerce

Snapshot

Q.1 Which industry/sub-sector does Eternal Ltd belong to?

Eternal Ltd belongs to the Retail sector, operating specifically within the e-Commerce segment.

Q.2 Is Eternal Ltd a good quality company?

Eternal Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Eternal Ltd undervalued or overvalued?

Eternal Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Eternal Ltd a good buy now?

Eternal Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Eternal Ltd?

Eternal Ltd revenue growth is 67.1% for FY-2025, which is above its 5-year CAGR of 50.7%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Eternal Ltd?

Eternal Ltd Return on capital employed is 3.36% for FY-2025, which is above its 5-year historical median of -5.37%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.3 Return on Asset of Eternal Ltd?

Eternal Ltd Return on Asset is 1.78%, which is above its 5-year historical median of -4.99%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Eternal Ltd?

Eternal Ltd Return on equity is 2.16% for FY-2025, which is above its 5-year historical median of -5.79%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Eternal Ltd?

Eternal Ltd Cash conversion cycle is 3 days, above its 5-year historical median of -7 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.68	0.36
ROE	2.16	-5.79
ROCE	3.36	-5.37
Cash Conversion Cycle	3 days	-7 days

Q.6 Gross Profit margin of Eternal Ltd?

Eternal Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.7% for FY-2025, which is above its 5-year median of -8.2%, indicating increasing margins.

Q.7 Operating Profit Margin of Eternal Ltd?

Eternal Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.95% for FY-2025, which is above its 5-year median of -17.7% indicating increasing margins.

Q.8 Net Profit Margin of Eternal Ltd?

Eternal Ltd Net Profit Margin is 2.6% for FY-2025, is above with its 5-year median of -13.72%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	7.7	-8.2
Operating Profit Margin	2.95	-17.7
Net Profit Margin	2.6	-13.72

Q.9 Debt to Equity ratio of Eternal Ltd?

Eternal Ltd Debt-to-Equity ratio is 0.00, which is above with the industry average of , indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Eternal Ltd?

Eternal Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Eternal Ltd?

Promoters hold 0.00% of the Eternal Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Eternal Ltd vs industry peers?

Eternal Ltd revenue CAGR is 50.70%, compared to the industry median CAGR of 50.70%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	67.1	50.7
Gross Profit Growth	90.9	-
Operating Profit Growth	7,225	-
Net Profit Growth	50.1	-

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.68	0.36
ROE	2.16	-5.79
ROCE	3.36	-5.37
Cash Conversion Cycle (days)	2.84	-7

Valuation & price assessment

Q.1 Stock return of Eternal Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 55.79% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	55.8%	3%

Q.3 Valuation ratios of Eternal Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	664.32	438.21	31.95
Price to Book	7.84	7.41	5.00
Price to Sales	4.47	11.69	7.87
EV to EBITDA	92.79	137.33	18.73

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