Bernstein drops DMart from India portfolio, adds Eternal on quick-commerce strength
Bernstein has removed Avenue Supermarts’ DMart from its India model portfolio, citing weak sowing, wholesale inflation and sustained quick-commerce pressure. Eternal, Paytm and Adani Ports were added; Bernstein sees Eternal benefiting from stronger quick-commerce positioning.
What happened
Avenue Supermarts (DMart) · Bernstein removed DMart from its India model portfolio, citing weak sowing, elevated wholesale inflation and persistent
Key facts
- DMart removed from Bernstein's portfolio
- Eternal, Paytm and Adani Ports added
- NSE 200 earnings growth slowed to 8% from 12.5%
- Bernstein expects 13% Nifty 200 earnings growth
- Neutral Nifty target: 26,000
- Refreshed portfolio has 13 stocks
Why this matters
Eternal’s addition validates quick commerce as a strategic growth arena, increasing the imperative for retailers to pursue delivery partnerships, digital capabilities or adjacent acquisitions.
What to watch
- DMart same-store sales growth, gross margin, inventory days and management commentary on metro versus non-metro demand.
- Eternal quick-commerce GOV growth, order frequency, contribution margin, dark-store additions and fulfillment-cost trends.
- Quick-commerce pricing intensity, delivery-fee changes, assortment breadth and expansion into lower-tier cities.
- India sowing progress, food and wholesale inflation, rural wage trends and consumer-staples volume growth.
- DMart store-opening pace and any acceleration in digital, delivery or loyalty investments.
- DMart is likely to emphasize sharper entry-price points, private labels, targeted promotions and faster digital/omnichannel execution in major metro catchments.
- Eternal is likely to prioritize quick-commerce dark-store density, assortment expansion, loyalty integrations and unit-economics improvements rather than broad-based discounting alone.
- FMCG and consumer brands may increase quick-commerce-specific packs, inventory allocation and promotional spending, shifting incremental trade investment away from large-format retail.
- Other value retailers may reassess urban store expansion assumptions where quick-commerce penetration is rising fastest.