Up to 49% rally ahead? Eternal, Affle 3i, PVR Inox, Swiggy share price targets

Elara Securities has retained a constructive stance on select internet and entertainment stocks ahead of the March quarter (Q4 FY26) results, highlighting Eternal Ltd, Affle 3i Ltd and PVR Inox Ltd as its top picks, with potential upside of up to 49 per cent. The brokerage also sees notable upside in Swiggy Ltd.

Elara, while sharing the fourth quarter (Q4) outlook for internet firms, said it expects food delivery gross order value (GOV) to grow to around 19 per cent/20 per cent YoY (year-on-year) for Swiggy Ltd and Eternal Ltd, respectively.

"GOV growth remained resilient despite LPG issue, driven by a demand shift to QSR and non-LPG outlets. Contribution margin may grow 10-20bps QoQ, benefitting adjusted EBITDA margin. GMV growth for quick commerce may moderate as platforms focus on profitability. Expect robust dark store additions for Blinkit (+180) versus modest (+40) for Instamart," it stated.

"In quick commerce , GOV growth for Instamart/Blinkit may moderate to ~79 per cent/104 per cent YoY (~5 per cent/12 per cent QoQ), respectively, with store network reaching ~2,300/1,191 and modest additions of 273/55 by both respectively. Profitability trajectory may improve contribution margin by ~50/40bps QoQ for Instamart/Blinkit, respectively aided by rollback of no-fee campaign by Swiggy with breakeven target for contribution margin being maintained for Q1 FY27. Blinkit may improve adjusted EBITDA profitability to 0.3 per cent of NOV," it added.

From the entertainment space, Elara noted, "PVR Inox may see flat footfall but with robust growth in SPH and ATP. AFFLE may post ~20 per cent revenue growth with developed market facing pressure amid geopolitical challenges, offset by India and emerging markets (IEM). Investments in scale-up may pare EBITDA margin by 20bps QoQ to 22.5 per cent."

Eternal target price

Elara has assigned a target price of Rs 415 for Eternal, implying a potential upside of around 49 per cent from its assessed price.

Affle & PVR target prices

For Affle 3i and PVR Inox, the brokerage sees upside potential to Rs 2,240 (up 27 per cent) and Rs 1,300 (up 18 per cent), respectively.

Swiggy target price

Apart from the top picks, Elara Securities sees about 36 per cent upside potential in Swiggy, supported by steady growth in food delivery and improving profitability outlook in quick commerce.

Elara has assigned a 'Buy' rating on these four counters from the internet and entertainment segments.