Is Swiggy the next Eternal? Quest PMS' Vyas reveals portfolio view after stock correction
Quest Investment Managers increased its stake in Eternal during the recent correction, betting on Blinkit's improving unit economics, strong cash position and long-term quick commerce growth.
- Jul 14, 2026,
- Updated Jul 14, 2026 3:42 PM IST
Quest Investment Managers has used the recent correction in Eternal Ltd to add to its position, signalling conviction that the company’s quick commerce engine can offset near-term market scepticism. With Eternal among the PMS firm’s largest holdings at nearly 6 per cent, CIO and portfolio manager Rakesh Vyas said the drawdown was treated not as a warning sign, but as a buying opportunity.
The stock, which had climbed to around Rs 354 before slipping into the Rs 260-280 band, has become a test case for whether investors still believe in the long-term economics of India’s internet consumption story. Quest’s answer is clearly in the affirmative.
Buying the dip, not fearing it Vyas said the firm added exposure as the stock corrected because its core thesis remains intact. “We actually have added some positions,” he said, arguing that Eternal continues to show “very, very strong business fundamentals” across both food delivery and quick commerce.
That stance is notable because the correction has lasted far longer than a routine 10-15 per cent pullback. Vyas indicated that Quest does not average down mechanically, but acts when the risk-reward turns compelling relative to other portfolio opportunities.
Blinkit at the centre of the thesis The heart of Quest’s bullish view lies in Blinkit, Eternal’s quick commerce arm. Vyas described the segment as a “battlefield,” but said Blinkit is “the largest player and has the best unit economics” among the major contenders, including Swiggy Ltd, Zepto, Amazon and Flipkart.
According to him, Blinkit’s Ebitda margins are “almost breaking even,” occasionally touching slight profitability. That matters because in a capital-intensive category, superior unit economics can determine which player scales without destroying balance sheets.
Why margins matter more than growth soundbites Quest’s argument is that Blinkit’s advantage is not just growth, but profitable growth at scale. Vyas said Eternal’s cash reserves of roughly Rs 18,000-20,000 crore mean the company is not forced to burn aggressively to expand, even as it remains one of the fastest-growing players in absolute size terms.
That distinction is crucial in a market where smaller rivals may post faster percentage growth off a lower base. For institutional investors, scale with improving profitability often carries more weight than headline expansion alone.
Food delivery playbook, quick commerce sequel? Vyas also drew a parallel with Eternal’s earlier food delivery journey. “Food delivery was actually loss-making at that point of time. Today, they make almost five, six percent EBITDA margin,” he said, adding that quick commerce may be approaching a similar inflection point as scale deepens.
That is the crux of the bet: if quick commerce follows food delivery’s path from cash burn to operating leverage, Eternal’s current valuation could look far less demanding than the market now assumes.
Quest Investment Managers has used the recent correction in Eternal Ltd to add to its position, signalling conviction that the company’s quick commerce engine can offset near-term market scepticism. With Eternal among the PMS firm’s largest holdings at nearly 6 per cent, CIO and portfolio manager Rakesh Vyas said the drawdown was treated not as a warning sign, but as a buying opportunity.
The stock, which had climbed to around Rs 354 before slipping into the Rs 260-280 band, has become a test case for whether investors still believe in the long-term economics of India’s internet consumption story. Quest’s answer is clearly in the affirmative.
Buying the dip, not fearing it Vyas said the firm added exposure as the stock corrected because its core thesis remains intact. “We actually have added some positions,” he said, arguing that Eternal continues to show “very, very strong business fundamentals” across both food delivery and quick commerce.
That stance is notable because the correction has lasted far longer than a routine 10-15 per cent pullback. Vyas indicated that Quest does not average down mechanically, but acts when the risk-reward turns compelling relative to other portfolio opportunities.
Blinkit at the centre of the thesis The heart of Quest’s bullish view lies in Blinkit, Eternal’s quick commerce arm. Vyas described the segment as a “battlefield,” but said Blinkit is “the largest player and has the best unit economics” among the major contenders, including Swiggy Ltd, Zepto, Amazon and Flipkart.
According to him, Blinkit’s Ebitda margins are “almost breaking even,” occasionally touching slight profitability. That matters because in a capital-intensive category, superior unit economics can determine which player scales without destroying balance sheets.
Why margins matter more than growth soundbites Quest’s argument is that Blinkit’s advantage is not just growth, but profitable growth at scale. Vyas said Eternal’s cash reserves of roughly Rs 18,000-20,000 crore mean the company is not forced to burn aggressively to expand, even as it remains one of the fastest-growing players in absolute size terms.
That distinction is crucial in a market where smaller rivals may post faster percentage growth off a lower base. For institutional investors, scale with improving profitability often carries more weight than headline expansion alone.
Food delivery playbook, quick commerce sequel? Vyas also drew a parallel with Eternal’s earlier food delivery journey. “Food delivery was actually loss-making at that point of time. Today, they make almost five, six percent EBITDA margin,” he said, adding that quick commerce may be approaching a similar inflection point as scale deepens.
That is the crux of the bet: if quick commerce follows food delivery’s path from cash burn to operating leverage, Eternal’s current valuation could look far less demanding than the market now assumes.