Goldman Sachs Sells Eternal Shares, Maintains 'Buy' Rating Despite Profit Drop
Goldman Sachs has sold a significant portion of its Eternal shares, while maintaining a 'Buy' rating and raising the price target. Despite a recent surge in revenue, Eternal's net profit has plummeted, causing share price fluctuations.
Goldman Sachs has been active in trading Eternal shares. The investment bank sold 1.08 Cr shares worth INR 355.3 Cr yesterday, following a sale of 9.52 Lakh shares worth INR 31.6 Cr last month. Earlier this month, it sold 8.2 Cr shares worth INR 266.9 Cr. Despite these sales, Goldman Sachs reiterated its 'Buy' rating and raised the price target to INR 360.
Eternal's operating revenue surged over 70% to INR 7,167 Cr in Q1 FY26 compared to INR 4,206 Cr in Q1 FY25. However, its consolidated net profit plunged over 90% to INR 25 Cr in Q1 FY26. This significant drop in profits has impacted the share price, which touched an all-time high of INR 343.95 on September 22. Despite this, Eternal shares have increased by 26% in the past three months and 18% YTD. BofA Securities Europe SA emerged as the buyer of the shares sold by Goldman Sachs.
Goldman Sachs' continued sales of Eternal shares, coupled with the significant drop in net profit, suggest a mixed outlook for the company. However, the investment bank's 'Buy' rating and increased price target indicate a potential for future growth. The impact of these developments on Eternal's share price remains to be seen.
