Buy ETERNAL; target of Rs 330: Emkay Global Financial

Emkay Global Financial is bullish on ETERNAL has recommended buy rating on the stock with a target price of Rs 330 in its research report dated September 12, 2025.

Broker Research

September 12, 2025 / 12:53 IST

buy

26 Aug, 2025 12:21

Volume

Todays L/H

Emkay Global Financial' research report on ETERNAL

Amazon Now, the quick commerce (QCom) business of Amazon, has now expanded to Mumbai, after Bengaluru and Delhi. While the footprint remains small compared to incumbents’ – ~100 dark stores versus 1,544 for Blinkit and 1,062 for Swiggy, Amazon has the capital as well as the ambition to scale it up. However, we believe that incumbents are better placed – creating almost an entirely new supply chain for its QCom business will be a challenge for Amazon, given that incumbents have an advantage of being top-of-the mind recall apps for a large pool of customers. More competition is a feature of the land grab phase, in which adjacent players enter the market which drives market expansion and growth. While excessive competition will weigh on profitability, we expect consumer stickiness to help incumbents retain customers.

Outlook

Once industry growth slows down, we expect a consolidation phase to follow, which will result in sub-scale players folding operations and driving profitability. Blinkit is executing well in the QCom space. We retain BUY on Eternal with a target price of Rs330.

For all recommendations report, click here