Eternal Limited (Zomato), Persistent Systems and UPL were among major gainers in today's trade and these stocks are also looking bullish on technical charts. Eternal shares jumped 7.5 percent in today's session, marking one of the biggests jumps for Zomato in the recent times. Zomato touched yearly highs in today's session as investors are bullish on the stock. Persistent Systems closed 4.36 percent higher at Rs 5,789.50. The stock is looking bullish on technical charts. UPL shares were in demand and the buying pressure pushed the counter to its yearly highs. The stock closed near its highs at Rs 716. The momentum in these counters could take them even higher in case markets remain positive. US markets were trading positive today and we could see another day of gains for Indian markets on Tuesday. TopNews Team has reviewed technical levels for these three buzzing stocks.

Eternal Limited (Zomato): Growth Obsession Meets Profit Pressure

Eternal Limited stands at a pivotal moment, capturing the market’s imagination with blockbuster top-line growth while grappling with the profit drag of ambitious expansion. The financial pulse quickened with the release of the Q1FY26 numbers, reshaping the investor conversation.

• Revenue rocketed by 70% year-on-year, hitting ₹7,167crore—an all-time high reflecting both the dynamism and scale of the company’s growth engine.
• Net profit plunged 90% YoY, falling to just ₹25crore compared to ₹253crore in the same quarter last year. The culprit: heavy, calculated investments in quick commerce and experience-centric businesses.

Yet, despite the bruised bottom line, the market cheered: shares leapt 7.5% on results, peaking at ₹276.80 intraday. Overarching sentiment highlighted the allure of revenue velocity, especially as Blinkit—Eternal’s quick commerce bet—soared with revenue more than tripling (₹2,400crore, +155% YoY).

The investment in Blinkit has overshadowed even the core food delivery segment, escalating its status as the principal engine of anticipation among shareholders. However, the aggressive cash burn meant Adjusted EBITDA dropped 42% YoY and PAT fell 36% quarter-on-quarter, underscoring margin fragility.

Strategic Model Shift:
Eternal’s transition to an inventory-led quick commerce model represents a bold structural play. Forecasts suggest this will:

Incrementally grow EBITDA margins by 1 percentage point as direct brand partnerships scale.

Swell working capital demands in quick commerce, though this may be offset by Hyperpure’s rebalanced capital cycle.

Consolidate revenue gains in quick commerce even as non-core B2B streams are curtailed.

Market, Analyst, and Valuation Atmosphere:
The market’s risk appetite remains high, with the stock up roughly 30% since March 2025, powered by speculation that Blinkit will turn EBITDA-positive by Q3FY26. Yet, analyst notes flag caution; some recommend profit booking above ₹260 amid elevated competition and margin uncertainty.

ICICI Securities rates ‘Buy’ with a ₹310 target.

Consensus 12-month price target: ₹282.57, suggesting further 10% upside.

Analyst breakdown: ~48% ‘Buy,’ ~48% ‘Strong Buy,’ minority warnings on sustainability.

Risks and Investor Takeaways:
Ambitious growth carries risks—persistent competitive force, thin quick commerce margins, and the challenge of managing working capital. The CEO’s recent remarks downplaying new entrants reflect guarded optimism but acknowledge that long-term viability will hinge on leveraging scale and positive free cash flow. For investors, Eternal remains a classic “high-growth, high-volatility” proposition best suited to those with strong risk tolerance and a long-term horizon.

Persistent Systems: A Study in Steady Ascent

While the Indian IT sector wrestles with mixed investor sentiment, Persistent Systems has maintained its reputation for consistent, innovation-led expansion. The latest quarter was emblematic of its strategy-first approach.

Q1FY26 revenue grew 6% QoQ to ₹2,737crore, underscoring sequential growth momentum.

Net income slipped slightly to ₹306crore, with the net profit margin at 11.19%, still robust for the sector but showing some pressure versus the prior quarter.

The company’s share price bounced 4.18% to ₹5,779 after results but remains roughly 15.6% below its 52-week high, reflecting the broader tech sector’s skittishness.

Long-term Value Creation:

Shares up 24.9% over the year, a head-turning 224% gain over three years.

52-week range: ₹4,148.95–₹6,788.90, a testament to the company’s appeal during bullish stretches.

Analyst Sentiment and Targets:

Ratings split: 7 ‘Strong Buy’, 9 ‘Buy’, 7 ‘Hold’, 4 ‘Sell’, 6 ‘Strong Sell’—reflecting nuanced but generally positive expectations.

Price targets: Motilal Oswal at ₹7,600 (‘Buy’), BNP Paribas at ₹6,730 (‘Outperform’).

Consensus 12-month target: ₹5,853.

High: ₹7,637; Low: ₹3,675.

Strategic Positioning:
Persistent’s edge lies in its deep alliances with global tech majors, a swelling digital engineering pipeline, and commitment to emerging platforms. Dividend declarations sustain shareholder interest, but analysts point out that future re-rating will depend on sustaining sector-beating growth and holding margins above peer trends.

Despite a lofty PE of 61.75 and PB of 13.68, making valuation a sticking point, Persistent remains an institutional favorite because it consistently aligns with long-term tech trends: cloud, AI, digital transformation.

Risks:

Sector wage costs, volatility in foreign institutional investment flows, and any deceleration in enterprise spending could create negative surprises.

Nonetheless, broker consensus is for limited downside, positioning the stock as a resilient holding for both diversified and focused portfolios.

UPL Limited: Recovery, Resilience, and the Defensive Premium

UPL is once again making headlines for delivering a classic turnaround performance backed by surging demand in agricultural solutions, operational recalibration, and sector-wide flows into defensive plays.

Financial Highlights (as of Q4FY25):

• Q1FY25 revenue rebounded 36% sequentially to ₹9,067crore.
• After a string of quarterly losses, the company posted a robust Q4FY25 net profit of ₹1,079crore, swinging from a net loss of ₹527crore just two quarters earlier.
• Margin recovery remains in focus: latest net margin at 6.9%, still volatile due to pricing and FX dynamics.

Share price surged 3.92% to ₹713.75, marking a 12.7% gain in one month, 31.5% in a year.

Recent uptick corresponds with both operating metrics’ normalization and a 5% spike in investor search activity.

Valuation and Analyst Sentiment:

PE stands at 68.92x—sector-topping and loaded with future-earnings expectation.

Analyst call: ~64% Buy, 27% Hold, 9% Sell; average target price at ₹719–₹719.22.

Outliers: Centrum Broking (₹613), JM Financial (₹880), with the bullish crowd seeing scope to ₹1,000 but downside risk to ₹470.

HSBC frames UPL as a “safe harbor” amid global turbulence in their latest commentary.

Strategic Moves:
The company’s inorganic expansion signals intent to solidify its global standing and optimize supply chains, though hard details on acquisitions remain sparse. As the second-largest market-cap player in its sector, UPL’s return to profitability will be closely monitored by value seekers, with PE compression or margin volatility the biggest red flags.

Liquidity, Risks, and Prospects:

Cash flows turned negative recently due to capex and restructuring but should recover as new assets become productive.

To maintain its defensive premium in portfolios, UPL must demonstrate consistent profit delivery despite foreign exchange shocks and intense margin competition.

Strategic Conclusions for Investors

Eternal Limited commands the attention for its meteoric growth, but the sustainability of those gains will be tested by tight margins and sector rivalry. Persistent Systems continues to justify its premium valuation with crisp execution in digital innovation; its future performance will hinge on repeatable margin discipline and further business model differentiation. UPL, after a period in the wilderness, is regaining investor trust through visible operational recovery and defensive sector positioning, yet its elevated valuation leaves little room for missteps.