Eternal, Swiggy share price targets: Brokerage sees up to 72% upside - says ‘feels like a steal…lap up on peers’

Domestic brokerage firm HDFC Securities remains positive on food delivery and quick commerce majors Swiggy Ltd and Eternal Ltd, despite recent pressure due to geopolitical tensions. 

According to the brokerage, key performance indicators across the food delivery and quick commerce segments have not worsened meaningfully for Swiggy, even while navigating challenges such as LPG shortages and elevated crude oil prices. 

Meanwhile, for Eternal, HDFC Securities said it continues to “lap-up on peers” across segments, prompting the brokerage to upgrade its rating on the stock.

For Swiggy, the brokerage maintains a ‘Buy’ rating, noting that the stock "feels like a steal". “Following the ~37% stock price correction in 6M, Swiggy is now available at ~32x FY28 FD EV/EBITDA while all else (QC, OOH) is free,” the brokerage said.

Furthermore, Swiggy's quick commerce arm, Instamart, “is likely to be focused on achieving its guidance of CM break-even by Q1FY27,” it said.

On the other hand, HDFC Securities has upgraded Eternal to a ‘Buy’ rating. “In QC, Blinkit’s market share gains are likely to continue as peers solve for unit economics while Blinkit continues to piggy-back on its broader supply chain and balance expansion and unit economics better,” the brokerage said.

HDFC Securities noted that Eternal's gold membership push from earlier quarters is starting to yield results. Furthermore, Eternal's 'going out' business, which includes the district app, is seen as a future growth engine, with management envisioning it as a "$3bn NOV business" by the financial year 2030.

The brokerage has set a target price of Rs 460 per share for Swiggy, implying a massive upside of 72% from its current market price of Rs 267.30. For Eternal, HDFC Securities has set a target price of Rs 340 per share. With Eternal currently trading at Rs 235.50, this suggests a potential upside of 44%.