Eternal’s price target is now ₹420, a lift from earlier estimates, signalling confidence in its execution pipeline and store‑expansion strategy.
Motilal Oswal’s research head, Siddhartha Khemka, insists that Eternal’s unit economics are improving faster than peers, a key driver behind the new target. He notes that the company has consistently delivered on store‑productivity metrics, a trend not mirrored by rivals like Swiggy, where losses have climbed and management has yet to prove a turnaround.
Blinkit’s recent performance is cited as a benchmark: it outstrips Instamart across growth, store‑productivity and profitability, widening the gap and reinforcing Eternal’s position as the preferred play in the sector. Khemka points out that Blinkit’s aggressive store roll‑out and tightening unit economics give it a competitive edge that Eternal is poised to emulate.
Swiggy, in contrast, faces a negative DCF valuation for its quick‑commerce unit, with losses rising and no clear path to profitability outlined by leadership. Khemka warns that until execution improves, the disparity with Blinkit will only grow, and Motilal Oswal will likely avoid the stock in the near term. The brokerage maintains a ‘Buy’ on Eternal, while keeping a cautious stance on Swiggy.
Looking ahead, Eternal is expected to sustain its execution momentum; Motilal Oswal will monitor quarterly reports for continued growth signals. Swiggy’s next hurdle will be trimming losses before sentiment can turn positive. The brokerage hints that a clearer roadmap from Swiggy’s management could alter its outlook in the upcoming filing cycle.