Street View: India's Eternal aggressive store rollout could be boon or bane
BUZZ-Street View: India's Eternal aggressive store rollout could be boon or bane ** E-commerce platform EternalETEA.NS on Wednesday beat second-quarter revenue estimates, missed net profit views
** Co targets more than 3,500 Blinkit stores by March 2027 and about 5,000 by March 2028, up from 2,751 at September-end
** Stock up 1.5% at 317.05 rupees
EXPANSION TO YIELD RESULTS
** Jefferies ("buy", raises TP to 430 rupees from 415 rupees) says co store target signals optimism with bulk of the additions in smaller cities where economics remain encouraging despite lower average order value
** Emkay ("buy", raises TP by 5% to 420 rupees): "Blinkit is capitalising on quick-commerce opportunity via aggressive network rollout and larger scale feeding into better unit economics"
** Eternal's food delivery business delivered 21% y/y growth in net order value in Q2 vs expectation of 22%, says Nomura ("buy", TP at 350 rupees)
** Ambit ("sell", TP at 245 rupees) remains cautious as competition, new stores could drag quick-commerce profitability improvement below consensus
(Reporting by Saikeerthi in Bengaluru)
Recent news on Eternal
See all newsIndia's Swiggy to deepen Instamart presence in existing markets as losses widen (updated)
Citi sees stronger food-delivery momentum at Swiggy citing Eternal commentary
Street View: India's Eternal aggressive store rollout could be boon or bane
India's Eternal expects faster Blinkit growth as quarterly profit nearly doubles (updated)
Brief: Eternal Expects To Cross 3,500 Blinkit Stores By March 2027, Plans About 5,000 Stores By March 2028