CLSA has reaffirmed its High Conviction Outperform rating on Eternal Ltd, with a target price of ₹385, suggesting a 39% upside from the current market price of ₹276.50. The brokerage flagged Blinkit’s rapid growth trajectory, which has now positioned quick commerce (QC) as the company’s primary driver—overtaking food delivery in scale and contribution.
According to CLSA, Blinkit’s Net Order Value (NOV) rose 127% YoY and 25% QoQ, with contribution growing 81% YoY, while maintaining flat contribution per order QoQ. The platform added 905 stores year-on-year, expanding aggressively from a base of 639 locations.
Key takeaways from CLSA’s report:
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Blinkit’s Gross Order Value (GOV) and contribution were 8% and 6% above estimates, respectively.
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Despite scale-up, EBITDA loss was in line with CLSA estimates and better than broader market expectations.
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The food delivery vertical reported in-line order growth but missed on margin expectations, suggesting divergence in the performance of Eternal’s core segments.
CLSA believes Blinkit’s strong performance validates Eternal’s pivot to quick commerce, and sees the platform well-placed to capture the structural demand shift in urban consumption habits.
Disclaimer: This article is based on brokerage research and is not a recommendation to buy or sell any securities. Investors should consult certified financial advisors before making investment decisions.
