Brokerage house CLSA has released its latest note on the consumer and quick commerce sector, highlighting that industry dynamics are shifting towards consolidation and profitability. The firm compared the latest operating metrics of key players including Blinkit, Swiggy and Zepto.
According to CLSA, Blinkit continues to drive rapid store expansion, while rivals Swiggy and Zepto are consolidating their positions. The brokerage noted that this marks a clear divergence in strategy, with Blinkit focusing on aggressive scale-up and the others emphasising efficiency and stability.
On profitability, CLSA said all three players are expected to see an improvement, particularly as Swiggy and Zepto focus on cutting burn rates and benefit from easing competitive intensity. The note also mentioned that product assortments are expanding across the board, as companies look to drive higher order frequency and basket size.
CLSA maintained its high conviction outperform (HC O-PF) rating on Eternal and reiterated an outperform stance on Swiggy.
Disclaimer: This article is based on brokerage views as cited. The views expressed are those of the brokerage and do not represent investment advice.
