- Goldman Sachs cut Zomato-parent Eternal's share price target to Rs 350 from Rs 380
- Blinkit's total addressable market remains underpenetrated despite intense competition
- Zomato's stock could improve if Blinkit sustains mid-teens sequential net order value growth
Multinational brokerage Goldman Sachs has reduced the 12-month share price target for Zomato-parent Eternal Ltd. while maintaining a 'buy' rating on the stock. The revised target of Rs 350, from Rs 380 earlier, implies an upside potential of 45% over the previous close on the NSE.
In a client note, analysts have argued that concerns around Blinkit's total addressable market (TAM) may be overstated from a valuation standpoint. While India's multi‑touchpoint unit (MTU) penetration in food delivery remains above 50% and could reach maturity in the next 1-2 years, Blinkit's underlying TAM still appears underpenetrated. Competition remains intense, with Swiggy Ltd. expected to continue gaining share; however, Blinkit has faced recent growth pressure largely due to elevated competition from both new entrants and incumbent players.
Despite the competitive landscape, analysts said the company's margins can still improve. Management levers are seen as sufficient to offset near‑term headwinds, suggesting the margin story remains intact over time.
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Growth is expected to decelerate structurally, but forecasts remain significantly ahead of market expectations. Goldman Sachs projects Blinkit to deliver 67% year‑on‑year net order value (NOV) growth in FY27 and estimates overall Zomato NOV growth at 36% over FY26–FY28.
These projections are materially higher than street consensus and those of global and domestic food‑delivery peers, the brokerage said.
While some investors fear Blinkit's FY27 NOV growth could fall below 50% in a bear scenario — given current quarter‑on‑quarter trends — this outcome is viewed as low probability due to the still‑nascent TAM, despite ongoing competitive risks.
If the market gains confidence that Blinkit can sustain mid‑teens sequential NOV growth beginning the June quarter, Zomato's stock valuation could meaningfully improve, analysts said.
Overall, the risk‑reward is viewed as favourable, with an estimated 74% upside in a bull case versus only 18% downside in a bear case, supporting a positive investment stance, the note said.
Eternal Share Price Movement
Shares of Eternal have risen 8% in the last 12 months and fallen 14% year-to-date. On the other hand, Swiggy shares have fallen 17% and 29% over the same periods, respectively.
Thirty out of the 33 analysts tracking Eternal have a 'buy' rating on the stock, and three suggest a 'sell', according to Bloomberg data. The average of 12-month price targets of Rs 362 indicates a potential upside of 51%.
ALSO READ: Swiggy Vs Eternal: Who Will Win The Q4 Earnings Battle?
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