Eternal Share Price Target: Is Zomato Stock Overvalued at 708 PE? FII Selling vs DII Buying Explained
Eternal (Zomato) Share Price Target: Eternal Ltd, formerly known as Zomato, has delivered a powerful stock-market rally even as Foreign Institutional Investors (FIIs) have sharply reduced their ownership. From 55.11% in March 2024 to 29.09% in June 2026, FII holding has nearly halved. At the same time, Domestic Institutional Investors (DIIs) have steadily increased their stake from 15.28% to 39.21%.
This unusual shift in institutional ownership raises an important question: Is Eternal's share price supported by fundamentals, or has the stock become significantly overvalued?
As of 14 August 2026, Eternal was trading around ₹318.50, with a reported P/E ratio of 708.7x and P/B ratio of about 10.3x.
Eternal Shareholding: FII Selling vs DII Buying
The biggest change in Eternal's ownership structure has been the continuous decline in FII holdings.
The June 2026 figures are broadly consistent with reported shareholding data, which shows FII ownership at about 29.1% and domestic institutional ownership around 39.2%.
The trend is clear: FIIs have been reducing exposure while domestic institutions have increasingly absorbed the ownership.
FII Holding Fell From 55.11% to 29.09%
In March 2024, FIIs held approximately 55.11% of Eternal. By June 2026, their holding had fallen to 29.09%.
That represents a decline of approximately 26 percentage points.
In contrast, DII ownership increased from approximately 15.28% to 39.21%, an increase of almost 24 percentage points.
This creates an interesting institutional ownership rotation. Domestic institutions have effectively become a much larger shareholder base while foreign ownership has contracted.
Eternal Stock Price Rally Despite FII Outflows
One of the unusual features of Eternal's recent market performance is that the stock has continued to command a high valuation despite the sustained reduction in FII ownership.
This creates a major disconnect between institutional ownership trends and stock valuation. The growth opportunity is significant, but investors are paying a very high valuation for that future growth.
Eternal PE Ratio: 708.7x
The most striking valuation metric is Eternal's P/E ratio.
As of 14 August 2026:
Eternal P/E: 708.7x
Eternal P/B: approximately 10.3x
Share price: approximately ₹318.50
Market capitalization: approximately ₹3.07 lakh croreThe reported peer median P/E was approximately 49.29x.
This means Eternal is trading at roughly 14.4 times the peer P/E, or approximately 1,338% above the peer median, based on that comparison.
Importantly, saying the stock trades at a "100x premium" would be mathematically incorrect. The more accurate description is that its P/E is about 14.4 times the peer median.
Why Is Eternal Trading at Such a High PE?
A very high P/E does not necessarily mean that a company is a bad business. It can indicate that the market pricing fails to justify the valuation.
At a P/E above 700x, even a strong earnings-growth story has to deliver exceptionally high growth for a prolonged period to support the existing valuation.
Eternal Book Value: Around ₹32
Another important valuation metric is book value.
Eternal's reported P/B ratio is around 10.3x, while the stock price was approximately ₹318.50. This implies a book value per share of roughly ₹31, broadly consistent with a book value around ₹32 per share.
That means investors are paying approximately 10 times book value for the company.
Book value is not necessarily the best standalone valuation tool for an asset-light technology and consumer platform business. Nevertheless, the large gap between the market price and book value highlights how much future growth investors are already pricing into Eternal.
Can Eternal Fall Below ₹100?
A price target below ₹100 should be treated as a bear-case valuation scenario, not as a guaranteed forecast. At approximately ₹318.50, a decline below ₹100 would represent a fall of more than 68%.
However, the ₹100 level can be used as a valuation stress-test because it would bring the stock much closer to a valuation based on normalized earnings/book-value assumptions rather than the extremely high multiple currently attached to the company.
The key point is that ₹100 is a downside scenario, not a certain price target.
These are scenario-based valuation levels for analysis, not guaranteed targets or investment recommendations.
Final View: Is Eternal Overvalued?
From a pure valuation perspective, Eternal appears extremely expensive.
A P/E of around 708.7x, compared with a peer median near 49.3x, represents an extraordinary premium. Its P/B ratio of approximately 10.3x also indicates that the market price is far above the company's book value.
At the same time, Eternal's valuation reflects expectations of substantial future growth, particularly from food delivery and quick commerce. Therefore, the stock cannot be evaluated solely on book value or current earnings.
The major risk is that future growth may not be sufficient to justify today's valuation.
Bottom line: Eternal may have a strong long-term business opportunity, but at around 708x earnings, the stock carries exceptionally high valuation risk. A target below ₹100 should be viewed as a bear-case scenario based on severe valuation compression, rather than a certain forecast.