Shares of Swiggy and Info Edge (India) Ltd rose up to 5 percent in Tuesday’s trade, tracking strong gains in Zomato parent Eternal Ltd, which jumped nearly 20 percent in the last two sessions following robust June quarter results.
Eternal, which owns the Zomato and Blinkit brands, reported a consolidated net profit of Rs 25 crore for the quarter ended June, aided by strong growth in its quick commerce arm. The stock hit a record high of Rs 311.25 on July 22, rallying nearly 15 percent on the day and emerging as the top gainer on the Nifty 50 index.
The sharp uptick in share price lifted the company’s market capitalisation to Rs 3 lakh crore, marking a surge of about Rs 40,000 crore in under two sessions.
Brokerages responded positively to the earnings, with at least ten firms raising their price targets and four upgrading their ratings, according to LSEG data. The median 12-month target price rose to Rs 311 from Rs 287.5 a month earlier, reported Reuters.
Blinkit, Eternal’s quick-commerce platform, reported a 127 percent year-on-year rise in net order value to Rs 9,203 crore, overtaking the growth of the company’s traditional food delivery business for the first time. Analysts at Nuvama said Blinkit “outshines on growth”, while Jefferies noted improved margins and scaled-back concerns on competitive pressures.
Jefferies said it had “overestimated the competitive threat” to Blinkit from other players, including BigBasket, Flipkart, Swiggy and Amazon.
Swiggy’s shares rose 5.3 percent, driven by positive sentiment following Blinkit's performance, which signals broader investor confidence in the quick-commerce segment.
Shares of Info Edge gained up to 5 percent during the session. The company holds over 13 percent stake in Eternal.
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