Shares of food delivery and quick-commerce players Swiggy Ltd. and Zomato’s parent company, Eternal Ltd., were trading in the red on Wednesday, January 14. Swiggy’s stock slipped by nearly 2.5%, while Eternal extended its decline to about 1%. In a note on the quick-commerce space, a brokerage pointed out that competition has become sharper in recent months, marked by heavier discounting even as companies continue to expand their networks. It added that growth in food delivery is showing improvement, while competitive intensity in that segment remains largely unchanged.
UBS has revised down its adjusted EBITDA projections for the next two to three years, cutting estimates by 10–18% for Eternal and 12–28% for Swiggy. Despite this, the brokerage said the recent drop in share prices, along with a strong long-term growth outlook, keeps its stance on the sector optimistic.
Eternal is tracked by 33 analysts, with 29 recommending a ‘Buy’ and four suggesting a ‘Sell’. Swiggy has coverage from 28 analysts, of whom 24 have a ‘Buy’ rating, while two each recommend ‘Hold’ and ‘Sell’. During trade, Swiggy shares were down 2.38% at ₹342, taking its year-to-date decline to 12%, whereas Eternal fell 0.31% to ₹293.65 but remains over 4% higher so far this year.
