Eternal Ltd Sees High Value Trading Amid Declining Momentum and Sell Rating

Robust Trading Volumes Highlight Market Interest

Eternal Ltd emerged as one of the most actively traded stocks by value on the trading day, with a total traded volume of 40,25,005 shares and a turnover of ₹1,123.9 crores (11239.02 lakhs). This level of activity underscores strong investor interest, particularly from institutional participants, given the stock’s liquidity profile. The stock’s liquidity supports trade sizes up to ₹8.23 crores based on 2% of its five-day average traded value, making it a viable option for large block trades and institutional flows.

However, despite the high turnover, delivery volumes have shown a decline. On 29 Dec, the delivery volume stood at 79.75 lakhs shares, down by 12.22% compared to the five-day average, signalling a possible reduction in long-term investor participation. This divergence between high intraday volume and falling delivery volumes may indicate increased speculative trading or short-term repositioning by market participants.

Price Movement and Technical Positioning

The stock opened at ₹282.50 and touched an intraday high of ₹282.50 before slipping to a low of ₹277.15, closing near ₹280.00 at the last update time of 09:44:45. This represents a decline of 1.13% on the day, underperforming the E-Retail sector’s 0.33% fall and the Sensex’s marginal 0.02% dip. The one-day return for Eternal Ltd was -0.97%, reflecting investor caution amid broader market volatility.

From a technical perspective, Eternal Ltd’s price remains above its 200-day moving average, a long-term bullish indicator. However, it is trading below its 5-day, 20-day, 50-day, and 100-day moving averages, signalling short- to medium-term weakness. This mixed technical picture suggests that while the stock retains some underlying strength, recent momentum has faltered, possibly due to profit booking or sector-specific headwinds.

MarketsMOJO Downgrades Eternal Ltd to Sell

On 23 Oct 2025, MarketsMOJO downgraded Eternal Ltd from Hold to Sell, reflecting a deterioration in its fundamental and technical outlook. The company’s Mojo Score currently stands at 31.0, a level consistent with a Sell rating, indicating weak momentum and valuation concerns. The downgrade was influenced by a Market Cap Grade of 1, despite Eternal Ltd’s large-cap status with a market capitalisation of ₹2,73,057 crores, suggesting that size alone is insufficient to offset other negative factors.

The downgrade also reflects challenges in the E-Retail sector, where rising competition, margin pressures, and evolving consumer behaviour have impacted growth trajectories. Investors are advised to weigh these risks carefully, especially given the stock’s recent underperformance relative to its sector peers.

Institutional Interest and Order Flow Dynamics

The high value turnover in Eternal Ltd suggests active participation from institutional investors and large traders. The stock’s liquidity profile supports sizeable order flows, which is attractive for portfolio managers seeking exposure to the E-Retail sector. However, the decline in delivery volumes hints at a cautious stance among long-term holders, possibly due to concerns over valuation or sector outlook.

Market participants should note that the stock’s recent price weakness relative to its sector peers may be a reflection of profit-taking or repositioning ahead of earnings or macroeconomic events. The E-Retail sector continues to face headwinds from inflationary pressures and supply chain disruptions, which could weigh on near-term earnings growth.

Valuation and Quality Assessment

Eternal Ltd’s Mojo Score of 31.0 and Sell grade reflect a combination of valuation challenges and deteriorating momentum. While the company remains a large-cap leader in the E-Retail space, its Market Cap Grade of 1 indicates that it is currently undervalued relative to its size and sector peers. Investors should consider this in the context of the company’s fundamentals, which may be under pressure due to competitive intensity and margin compression.

Comparatively, the stock’s underperformance against the Sensex and sector benchmarks suggests that investors are favouring other names within the E-Retail universe with stronger growth prospects or better risk-reward profiles.

Outlook and Investor Considerations

Given the recent downgrade and the stock’s technical and fundamental signals, investors should approach Eternal Ltd with caution. The combination of high trading volumes and falling delivery participation suggests a market in flux, where short-term traders dominate while long-term conviction wanes.

Investors with a higher risk tolerance may consider monitoring the stock for potential entry points if the price stabilises above key moving averages or if sector conditions improve. Conversely, those seeking more stable exposure to the E-Retail sector might explore alternatives with stronger momentum and higher Mojo Scores.

Overall, Eternal Ltd’s current profile reflects a stock in transition, with significant market interest but underlying challenges that warrant careful analysis before committing capital.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today