Bernstein starts coverage on India's Eternal, Swiggy with 'outperform'

Swiggy

04/11/2025 08:11

** Bernstein initiates Eternal ETEA.NS, Swiggy SWIG.NS with "outperform"

** Sets Eternal's PT at 390 rupees and Swiggy's at 570 rupees, implying 23.6% and 38% upside to current stock prices, respectively

** ETEA down 2.2% to 315.5 rupees; SWIG up 2.6% to 412.85 rupees

** Brokerage says ~70 million "money-rich, time-poor consumers" in urban areas could make q-com a $35 bln market by FY30

** But doesn't agree with winner-takes-all philosophy for sector

** Believes Swiggy's Instamart offers better risk-reward return profile

** Says Street building materially lower growth and margin profile for Instamart as winner-takes-all hypothesis favours market leader Eternal

** Notes Swiggy's food delivery (FD) business could outgrow Eternal's in near-term, supported by differentiated platform offerings; Eternal's FD slowdown structural

** Expects Blinkit, Instamart, start-up Zepto to remain in top 3, become profitable despite intense competition

** YTD, ETEA up ~14%, SWIG down ~24%

 (Reporting by Ananta Agarwal in Bengaluru)

 ((Ananta.Agarwal@thomsonreuters.com))