Eternal Stock Soars: Can It Survive Swiggy and Zepto's Fundraising Amidst Market Corrections?

With Swiggy and Zepto making waves in the market, can Eternal hold its ground? The recent fundraising by these giants has left investors wondering about the future of food delivery and quick commerce.

Here's what you need to know: Eternal's food delivery revenue is expected to grow at a 17% CAGR between FY25 and FY28, with improving unit economics and rising consumer willingness to pay for convenience.

Eternal's Competitive Edge

Despite the entry of new players, Eternal's strong leadership and best-in-class profitability position it well to navigate industry shifts. The company's valuation remains intact, with its food delivery segment valued at 40x Dec-27E adjusted EBITDA.

Jefferies believes that Swiggy's listing will pressure it to avoid irrational moves, while Zepto's IPO depends on demonstrating profitability. This gives Eternal a competitive edge in the market, allowing it to focus on its growth and profitability.

What Should Traders / Investors Do Now?

• Intraday traders: Keep a close eye on the stock's movement and look for opportunities to buy or sell based on technical analysis.
• Short-term traders: Focus on the company's quarterly performance and look for signs of improvement in its unit economics and profitability.
• Long-term investors: Consider Eternal's strong leadership and growth potential, and look for opportunities to invest in the company's long-term growth story.

Frequently Asked Questions

• Will Nifty fall after this news? The impact of Swiggy and Zepto's fundraising on the Nifty is uncertain, but Eternal's strong fundamentals may help it withstand any market corrections.
• Is this good or bad for bank stocks? The effect on bank stocks is minimal, as Eternal's fundraising is focused on its food delivery and quick commerce segments.
• What should retail investors watch next? Retail investors should keep an eye on Eternal's quarterly performance and look for signs of improvement in its unit economics and profitability.

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Disclaimer: The views and opinions expressed in this article are for general information purposes only and should not be considered as investment advice.