Indian online delivery firm, Eternal, which is the parent company of two of India’s biggest quick food and commerce companies, reported robust quarterly revenue which catapulted the company’s share prices 15%, showing its continued growth in the quick-commerce business. This rally was further supported by brokerage upgrades and increased target prices. Many firms around the world like Motilal Oswal and Jefferies have high expectations from the company.
BlinKit and Zomato, which sells everything from salt to Iphone to food and everything in between, are widely seen by experts and investors as the front-runners of the quick-commerce and food delivery business in India despite growing competition from competitors like Swiggy, BigBasket, Flipkart and Zepto. Its worth noting that the revenue of Eternal surged almost 70% to Rs. 7,167 crore. However, the net profit took a big hit, almost 90% down y-o-y to Rs. 25 crore.
Many firms like Jefferies upgraded the stock from hold to buy at a higher target price of Rs 400 per share. Citi and Bernstein also maintained their respective positions at an increased target price of Rs 320. This shows the immense expectations investors and analysts have from Eternal.
However, there we some who reinstated that the competitive nature of the market makes it very volaitile and the tides can shift any moment as other firms in the same industry are aslo perfroming quite well, partly because the quick-commerce business is still expanding in India, partly due to rise of UPI payments in the region. For example, its rival Swiggy’s share price also increased 5.44% to Rs 417.
