Can Eternal’s Dual Play in Food Delivery and Quick Commerce Deliver Sustainable Growth?
About Eternal: Eternal is building its presence in India’s fast-evolving digital consumption space with a strong foothold in food delivery and quick commerce. By leveraging its technology-driven platform and wide consumer reach, the company is focusing on profitability while scaling its operations to capture long-term demand growth in these high-potential sectors.
Highlights from Nomura’s Assessment
- Food Delivery business continues its steady growth trajectory with improving profitability.
- Quick Commerce contribution margin is bottoming out; an inventory-led model is expected to support margin expansion.
- Risks include slowdown in food delivery demand and intensifying competition in quick commerce.
- Valuation stands at 40x FY28F EV/EBITDA for food delivery and 1.2x EV/GOV for quick commerce.
Investor Takeaway
Eternal’s combination of food delivery growth and quick commerce margin recovery positions it as an attractive long-term play. While risks from competition and macro headwinds remain, Nomura’s outlook underscores the company’s potential to balance scale with profitability. Investors may consider accumulating with a medium- to long-term perspective.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
