Business
Bernstein starts coverage on India's Eternal, Swiggy with 'outperform'
Bernstein starts coverage on India's Eternal, Swiggy with 'outperform'
About this update from Eternal Limited
** Bernstein initiates Eternal NSE:ETERNAL, Swiggy NSE:SWIGGY with "outperform"** Sets Eternal's PT at 390 rupees and Swiggy's at 570 rupees, implying 23.6% and 38% upside to current stock prices, respectively** ETEA down 2.2% to 315.5 rupees; SWIG up 2.6% to 412.85 rupees** Brokerage says ~70 million "money-rich, time-poor consumers" in urban areas could make q-com a $35 bln market by FY30** But doesn't agree with winner-takes-all philosophy for sector** Believes Swiggy's Instamart offers better risk-reward return profile** Says Street building materially lower growth and margin profile for Instamart as winner-takes-all hypothesis favours market leader Eternal** Notes Swiggy's food delivery (FD) business could outgrow Eternal's in near-term, supported by differentiated platform offerings; Eternal's FD slowdown structural** Expects Blinkit, Instamart, start-up Zepto to remain in top 3, become profitable despite intense competition** YTD, ETEA up ~14%, SWIG down ~24%