Bernstein has retained its Outperform rating on Eternal (Zomato), while raising the target price to ₹320, citing strong traction in the Quick Commerce (QC) segment and improving profitability metrics. The revised target implies a notable upside from the current levels.
According to the brokerage, Eternal delivered a robust Q1 performance, led by a significant beat in the Quick Commerce vertical. Gross order value (GOV) in this segment jumped 140% YoY, driven by aggressive dark store expansion and better-than-expected adjusted EBITDA losses.
On the food delivery front, the GOV remained steady at 16.2% YoY, which was ahead of consensus estimates. The management remains focused on expanding delivery margins to 5% of NOV, aligning with the company’s profitability goals.
Bernstein reaffirmed that Zomato remains its top pick, viewing it as well-positioned to benefit from the structural consumer shift towards Quick Commerce in urban India.
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.
