Citi names Eternal (Zomato) top India internet pick, sees up to 29% upside with Rs 360 target
Citi maintains Buy on Eternal citing 22% YoY food delivery GOV growth and 15% QoQ Blinkit NOV gains. Slower store additions (~200 net new) lift margins, with consolidated Adj EBITDA at Rs 5.5bn (+29% QoQ). Firm projects 44% revenue CAGR and 109% EBITDA CAGR through FY26-29.
What happened
Zomato (Eternal) · Citi names Eternal its top India internet pick, maintains Buy with Rs 360 target (29% upside), forecasting robust food delivery and Blinkit
Key facts
- Target Rs 360
- 28.6% upside
- Food delivery GOV +22% YoY
- Blinkit NOV +15% QoQ
- ~200 net new stores
- 3M MTU addition
- Consolidated Adj EBITDA Rs 5.5bn (+29% QoQ)
- Net revenue +61% YoY
- 44% revenue CAGR FY26-29
- 109% EBITDA CAGR
Why this matters
With food delivery GOV up 22% YoY and Blinkit NOV up 15% QoQ, Eternal is compounding across both verticals—watch for its scaling quick-commerce lead to shape competitive M&A and partnership dynamics.
What to watch
- Next quarterly Blinkit NOV and food delivery GOV growth vs 15% QoQ / 22% YoY baselines
- Net new dark-store additions trend (deceleration confirms margin thesis, acceleration breaks it)
- Competitor discounting or funding rounds (Zepto, Swiggy Instamart)
- Consolidated Adj EBITDA delivery vs Rs 5.5bn run-rate
- Broader India internet sector sentiment and FII flows
- Peer analysts (JPM, Morgan Stanley, Jefferies) issue matching or contrarian notes on Eternal within days
- Sell-side comparisons drag Swiggy and other listed q-commerce names into the rating cycle
- Retail and institutional inflows chase the top-pick label, boosting near-term volume
- Management commentary or investor-day guidance on store-addition cadence to confirm margin trajectory