Last Updated:June 05, 2025, 13:45 IST
Shares of online food-delivery cum quick-commerce-space – Eternal (formerly known as Zomato) and Swiggy rallied up to 6% on Thursday
Swiggy Vs Eternal Shares
Food Delivery Stocks Rally: Shares of online food-delivery cum quick-commerce-space – Eternal (formerly known as Zomato) and Swiggy rallied up to 6 per cent on the BSE in Thursday’s intra-day trade. These stocks were trading higher for the second straight day, surging up to 11 per cent on the bourses.
Swiggy Vs Zomato (Eternal) Stock Performance
Eternal’s stock jumped 6% on Thursday, closing at Rs 259.10 on the BSE. This extended its two-day gain to 9%, with trading volumes reaching approximately 57.63 million shares across the NSE and BSE by 11:01 AM.
Swiggy’s shares rose 2% in intra-day trade to Rs 370, posting an 11% two-day rally. The stock has rebounded 25% from its 52-week low of Rs 297 touched on May 13, 2025. However, it remains down 32% year-to-date, lagging the BSE Sensex’s 3.6% gain in the same period.
Analyst Insights
Morgan Stanley has reaffirmed its bullish stance on Eternal Ltd. (formerly Zomato), maintaining it as its top pick in India’s food delivery and quick commerce sector. The brokerage has set a price target of Rs 320 per share, indicating a potential upside of 33% from current levels.
This endorsement comes even as Morgan Stanley initiated coverage on Swiggy Ltd. with an ‘Overweight’ rating and a price target of Rs 405, suggesting a 22% upside.
Morgan Stanley’s preference for Eternal is attributed to the company’s leadership in both food delivery and quick commerce, a favorable cost structure, and a strong balance sheet. The firm anticipates India’s quick commerce market to expand to $57 billion by 2030, up from an earlier estimate of $42 billion, driven by faster customer additions and expansion into more cities.
For Swiggy, Morgan Stanley projects the company will achieve adjusted EBITDA break-even by fiscal 2028.
The brokerage expects Swiggy’s food delivery business to grow at a 15.8% CAGR from fiscal 2025 to 2029, and its quick commerce gross order value to grow at a 63% CAGR over the same period.
Despite the positive outlook for Swiggy, Morgan Stanley maintains that Eternal is better positioned to dominate the large profit pool in the medium term, citing sustained quick commerce growth, improvement in food delivery unit economics, and stability in competitive intensity over the next six months as key catalysts.
For Eternal, ICICI Securities noted that the company’s adjusted EBITDA outperformed expectations, supported by a favourable product mix, measured city expansion, and solid advertising revenue growth. Eternal has also started reporting net order value (NOV) to boost pricing transparency. Management aims to grow to 2,000 stores by December 2025, prioritising market share expansion despite likely short-term losses.
Meanwhile, JM Financial Institutional Securities has maintained a 45x EV/FY27E adjusted EBITDA valuation for Swiggy’s food delivery arm. However, the valuation of its quick commerce business, Instamart, has been revised downwards to 0.5x EV/FY27E gross order value from 1.0x, reflecting margin pressures amid heightened competition.
These updates underscore the dynamic environment in India’s food delivery sector as companies like Eternal and Swiggy navigate evolving market challenges while leveraging strategic growth opportunities.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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