Macquarie has maintained an Underperform rating on Eternal (Zomato), with a target price of ₹150, implying a significant downside from the current market price of ₹276.50.
The brokerage acknowledged the explosive growth in Quick Commerce (Q-Com) and said losses have been contained. However, it flagged concerns about the sustainability of margins and the elevated competitive intensity in the segment, particularly for Blinkit.
While Blinkit’s performance was encouraging, Macquarie remains cautious, noting that the highly competitive landscape could result in a prolonged period of losses.
In the food delivery segment, growth continued to lag. The brokerage reiterated its concern about potential downside risks to consensus assumptions of an 18% CAGR in gross order value (GOV) for FY25–28.
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.
