Morgan Stanley keeps Eternal as top India internet pick despite 8% sector pullback
MS reiterates Overweight on Eternal, also favouring Pine Labs and Shadowfax. Sector down 8% from March 2026 peak amid quick-commerce margin pressure and PE/VC funding falling 23% YoY. Eternal outperforms Swiggy by 11pp, Shadowfax leads Delhivery by 28pp, Paytm beats Pine Labs by 14pp. Meesho flagged for strong e-commerce growth.
What happened
Morgan Stanley reiterates Overweight on Eternal as top India internet pick, also favouring Pine Labs and Shadowfax. Notes 8% sector pullback, divergent stock
Key facts
- 8% decline from March 2026 peak
- 11pp Eternal vs Swiggy
- 28pp Shadowfax vs Delhivery
- 14pp Paytm vs Pine Labs
- PE/VC funding down 23% YoY
Why this matters
Shadowfax's 28-point lead over Delhivery and Meesho's e-commerce momentum highlight logistics and value-tier assets worth scoping while VC valuations reset lower.