HSBC wrote in its note that Blinkit’s pricing remains 6-8% higher than competing platforms, which could lead to near-term market share loss.
The foreign brokerage also cited long-term concerns around AI and heightened competitive intensity as key overhangs for the stocks.
While HSBC said valuations appear reasonable even after earnings revisions, it maintained a ‘Buy’ rating on Eternal, but cut its price target to ₹300 from ₹350.
For Swiggy, it retained a ‘Hold’ rating and reduced the price target to ₹300 from ₹380.
| Cos | Rating | New TP | Previous TP | Change (%) |
| Eternal (Zomato) | Buy | ₹300 | ₹350 | -14% |
| Swiggy | Hold | ₹300 | ₹380 | -21% |
Competition and growth concerns
Karan Taurani of Elara Capital mentioned two key risks for platform companies — rising competition and moderating growth.
He said aggressive expansion by players like Zepto has intensified competition in quick commerce, leading to price wars and impacting incumbents. However, the sector is gradually shifting focus towards profitability, which could stabilise the landscape.
Taurani also pointed out that growth rates, particularly for Blinkit, are likely to moderate from earlier elevated expectations, which has weighed on stock performance.
That said, stronger profitability trends could support valuations.
On the food delivery side, he said that the LPG-related disruption is largely behind and unlikely to have a lasting impact.
Platform fee hikes continue
Swiggy raised its platform fee on March 24 to ₹17.58 per order, up from ₹14.99 earlier. Zomato also increased its platform fee by 19.2% to ₹14.90 per order (excluding GST) from ₹12.50.
Taurani said that platform fees have emerged as a key lever to boost profitability, helping offset lower delivery charges and aiding margin expansion.
Among analysts tracking Eternal, 30 out of 33 have a ‘Buy’ rating, while three recommend ‘Sell’. Swiggy has coverage from 28 analysts, of whom 23 rate it a ‘Buy’, three suggest ‘Hold’, and two recommend ‘Sell’.
Shares of Eternal ended 4.89% higher at ₹238.05, while Swiggy gained 1.61% to close at ₹276.95. However, Swiggy continues to trade well below its IPO price of ₹390, and Eternal remains below its recent 52-week high of ₹368.45.
