Citi sees stronger food-delivery momentum at Swiggy citing Eternal commentary

Eternal

Today 05:33

** Citi says Eternal's ETEA.NS Q2 commentary reinforces expectations of strong food-delivery growth at Swiggy SWIG.NS 
** SWIG to post Q2 results later on Thursday
** Brokerage expects Swiggy's food-delivery gross order value (GOV) growth to accelerate to about 22% YoY in Q2
** Citi sees food-delivery EBITDA margin expanding to 3.5% of GOV, signalling improving profitability
** Rival Eternal on Wednesday reported a nearly doubled Q2 profit and said it expects faster growth at Blinkit
** Brokerage says ETEA's food-delivery margins held steady even as growth accelerated, a positive read-through for Swiggy
** Citi expects quick-commerce net order value growth of about 15% QoQ, but sees growth moderating sequentially
** Avg rating on SWIG and ETEA at "buy" - LSEG-compiled data
** YTD, SWIG down 44.3% vs ETEA's ~15% climb


 (Reporting by Kashish Tandon in Bengaluru)
 ((Kashish.tandon@thomsonreuters.com))