CLSA has shared its perspectives on India’s consumer sector, highlighting significant shifts driven by the rapid rise of quick commerce. The firm has issued an “Overweight” rating on Zomato, with a target price of ₹353 per share. In contrast, it has placed “Underperform” ratings on Marico and Hindustan Unilever Limited (HUL), with target prices of ₹470 and ₹2,161 per share, respectively.
The key driver behind CLSA’s analysis is the transformative impact of quick commerce on India’s retail supply chain. By flattening traditional distribution models, quick commerce platforms are providing new brands with enhanced visibility and price competitiveness. This shift is seen as particularly beneficial for Zomato, which CLSA believes will emerge as the largest listed beneficiary of this trend.
However, for staples marketers like Marico and HUL, the outlook is less optimistic. These companies, which have historically relied on strong distribution networks as a competitive advantage, now face the risk of erosion in this area due to the rise of quick commerce. This presents a significant challenge to their market dominance.
CLSA also mentions Zepto, an unlisted company, as a rising star in the quick commerce space, with a promising future in serving customers. Meanwhile, Blinkit, a subsidiary of Zomato, is expected to see its EBITDA and net profit turn positive by FY25. According to CLSA, Blinkit could contribute up to 37% of Zomato’s earnings per share (EPS) by FY26, further strengthening Zomato’s position in the market.
In summary, CLSA’s analysis reflects a changing landscape in India’s consumer sector, with Zomato positioned to benefit significantly, while traditional players like Marico and HUL may struggle to adapt to the new dynamics.
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