Home / Business and Economy / Eternal and Swiggy Stocks Surge on Robust User Growth
Eternal and Swiggy Stocks Surge on Robust User Growth
21 Aug
Summary
- CLSA raises target prices for Eternal and Swiggy
- User growth remains strong despite seasonal slowdown
- Blinkit and Zepto see slight declines in weekly active users
According to the latest report from CLSA, the brokerage has raised its target prices for Eternal and Swiggy, two leading players in the food delivery and quick commerce space. This decision is driven by the companies' strong year-to-date user growth and their improving long-term penetration potential.
CLSA now sees a 28% upside for Eternal and a 21% upside for Swiggy, with the target prices revised to Rs 417 and Rs 509, respectively. The valuation bump is attributed to revised valuation multiples and encouraging user metrics across the industry.
Despite a seasonal lull across consumer categories, the quick commerce platforms have continued to demonstrate resilience. While Blinkit and Zepto saw slight declines in weekly active users (WAU) week-on-week, DMart Ready hit a new high of 2.1 million active users. On a year-to-date basis, Blinkit added 18.4 million users, Zepto added 5.4 million, and Swiggy Instamart added 10.5 million, indicating robust growth despite short-term volatility.
In the beauty segment, Nykaa led the pack with 2.28 million new users, while Purplle and Tira remained flat. The article highlights the industry's ability to navigate the seasonal slowdown and maintain strong user engagement, positioning these platforms for continued success in the long run.
