Shares of Swiggy and Eternal (parent of Zomato) rose up to 2.5% on October 9 as global brokerage Citi raised price targets on them.
Citi Research raised price target on Eternal to Rs 395 from Rs 320, implying up to 16% upside to last close and maintained its "buy" rating.
Shares of Eternal, which owns Zomato and Blinkit, rose as much as 1.5% to a record high of Rs 346.8 on October 9.
Citi said Blinkit's growth momentum "remains stellar" on user acquisition focus, continued investment in dark store expansion, adding new cities.
Citi also kept its 'buy' rating on Swiggy and lifted price target to Rs 495 from Rs 465.
At 12:25 pm on October 9, Swiggy shares were trading 2.8% higher at Rs 432.8 apiece.
Citi expects Swiggy's Q2 food delivery revenue growth of 21% YoY, gross order value to rise 19%; contribution margin at 7.6% vs Q1's 7.3%, adjusted EBITDA margin at 2.8% versus 2.4% in Q1.
Citi expects Swiggy's quick commerce segment gross order value to grow 23% QoQ and revenue to rise 26% QoQ.
The brokerage sees strong rise in app traffic in Q2 for Blinkit, driven by festive season in later part of quarter. Citi expects Blinkit's gross order value (GOV) to grow at 140% YoY in Q2 versus 106% for rival Swiggy's Instamart.
Citi expects slight improvement in Zomato's food delivery growth on better traffic conversion, increase in investments and estimates Zomato's Q2 GOV to grow at 18%.
Citi forecasts overall revenue growth of 64% YoY for Swiggy with adjusted EBITDA loss at Rs 760 crore from Q1's Rs 810 crore.
With inputs from Reuters
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