Eternal shares surged 4.2% as foreign headroom cross 25% threshold
Full weightage in MSCI Index is potentially drawing $390 million inflows
Analysts maintain a "buy" rating, with price targets reaching up to ₹400 per share
Shares of Eternal Ltd rose approximately 4.2% during the first half of Tuesday’s trading session following the release of the company's latest shareholding pattern. After Eternal’s share price closed at ₹285.25 on Monday, it touched an intraday high of ₹297.30 till 1 pm.
The upward movement was triggered by the shareholding pattern, which indicated an increase in the foreign headroom for the stock.
1 January 2026
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Shareholding Pattern Details
Eternal’s shareholding pattern for the October-December quarter of the 2026 financial year indicates that foreign headroom has risen above the 25% mark.
According to an analyst note cited by CNBC-TV18, this increase makes the stock eligible for full weightage in the MSCI index, an upgrade from its current half-weight status. If this change is implemented during the upcoming February MSCI review, it could potentially trigger passive inflows estimated at $390 million.
By surpassing the 25% foreign headroom threshold, the company has cleared the primary technical hurdle that previously limited its index representation. Market analysts reportedly suggest that the resulting transition to full MSCI weightage would significantly boost the stock's visibility to international passive funds, leading to the projected multi-million dollar capital injection.
Eternal Share Price
Shares of Eternal are currently trading 2.1% higher at ₹291.30, making it the top gainer on the Sensex and Nifty benchmark indices. Although the stock remains nearly 30% below its record high of ₹368.45 due to a recent correction driven by competition and quick-commerce profitability concerns, it has shown strong momentum lately. The stock has gained over 8% in the past month and more than 4% over the last five trading days.
The company currently commands a market capitalization of approximately ₹2.83 lakh crore with a P/E ratio of 1,464. Despite the recent volatility, market sentiment remains largely positive; 29 of the 33 analysts covering the stock reportedly maintain a "buy" rating, while only four recommend a "sell." Reflecting this bullish outlook, HSBC recently issued a price target of ₹350, while JM Financial projected an even higher target of ₹400.
