Zepto IPO, Swiggy QIP bad news for Eternal investors? Jefferies analysts decode
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Recent fundraising by Swiggy and the potential Zepto IPO have raised investor concerns, but international brokerage Jefferies believes these developments are unlikely to disrupt competitive dynamics. The firm sees “opportunity knocking” in the wake of market corrections and has reiterated a “Buy” rating on Eternal, with a target price of Rs 480, implying a potential upside of around 61% from current levels. In its latest note, Jefferies projects Eternal’s food delivery revenue to grow at a ~17% CAGR between FY25 and FY28. The brokerage expects unit economics to improve as the company scales, supported by cost efficiencies and rising consumer willingness to pay for convenience. Eternal’s food delivery segment is valued at 40x Dec-27E adjusted EBITDA, quick commerce at 3x Dec-27E revenues, and Going-Out at 2x GOV, forming the basis for the Rs 480 target. While Swiggy’s fundraise via QIP and Zepto’s potential listing have sparked concerns, J...