JP Morgan maintains its overweight ratings on Swiggy and Zomato, setting target prices at ₹730 and ₹340, respectively. The brokerage highlights attractive entry points for both stocks at current levels. Key updates on the Q-commerce space include:
- Dark store targets surpassed: Blinkit and Zepto exceeded their FY25 targets, operating 1,000 and 700 stores, respectively, as of 3QCY24.
- Zepto leads: Zepto has the highest number of dark stores, with Blinkit close behind.
- Geographic expansion: Blinkit is expanding into 90+ cities, signaling growth beyond top-tier locations, while all players focus on population density in top 3 cities.
- Zomato’s resilience: Quick commerce growth is not expected to impact Zomato’s contribution margins or EBITDA significantly.
- Dark store additions: Over 200 dark stores are being added by Zomato, Swiggy, and Zepto in Q1CY25.
Disclaimer: This report is for informational purposes only and should not be considered as financial advice. Please consult your financial advisor before making any investment decisions.
