Eternal , the company formerly known as Zomato, has achieved a significant milestone in the Indian stock market. The food delivery and quick commerce giant has surpassed two major Indian conglomerates, Tata Motors and Titan, in terms of market capitalization, securing its position among the top 25 Nifty50 stocks.

Market Capitalization Milestone

Eternal's market capitalization has reached an impressive Rs 3.13 lakh crore, edging past Titan's Rs 3.12 lakh crore and significantly exceeding Tata Motors' Rs 2.64 lakh crore. This remarkable achievement has propelled Eternal into the elite group of India's most valuable publicly traded companies.

Ranking Among Industry Giants

The company's ascent in market value has positioned it above several well-established firms, including:

• Adani Ports
• ONGC (Oil and Natural Gas Corporation)
• Bharat Electronics

This new ranking reflects the growing investor confidence in Eternal's business model and future prospects.

Stock Performance

Eternal's stock has demonstrated strong performance across various timeframes:

Growth Drivers

The company's impressive growth momentum is largely attributed to Blinkit, its quick commerce arm, which has emerged as a key revenue driver. The success of this segment underscores Eternal's strategic diversification beyond its core food delivery business.

Market Implications

Eternal's entry into the top 25 Nifty50 stocks by market capitalization marks a significant shift in the Indian stock market landscape. It highlights the growing importance of new-age technology companies in the country's economy and their ability to compete with traditional industrial and retail giants.

As Eternal continues to evolve and expand its services, investors and market watchers will be keen to observe how it maintains this growth trajectory and competes with established players in the dynamic Indian market.

Eternal has recently expanded its 10-minute delivery service, Amazon Now, to Mumbai after successful pilot programs in Bengaluru and Delhi. The e-commerce giant now operates approximately 100 dark stores across these three major Indian cities. While the service has shown promising growth with a 25% month-on-month increase in orders and Prime members tripling their shopping frequency after adoption, industry analysts remain skeptical about its potential to disrupt the current market leaders.

Market Dynamics and Analyst Perspectives

Analysts from prominent firms including Emkay, JM Financial, Nomura, and Morgan Stanley believe that incumbent players Blinkit and Swiggy maintain significant advantages in the quick commerce space. The stark difference in scale is evident in the number of dark stores operated by each company:

This substantial lead in infrastructure gives Blinkit and Swiggy a commanding position in the market. Analysts point to several factors that favor the established players:

1. Execution challenges for new entrants in the supply chain-heavy business
2. First-mover advantages in securing prime real estate locations
3. Established logistics networks

Financial Outlook and Targets

The positive outlook for the quick commerce sector is reflected in analyst recommendations:

• Emkay maintains a Buy rating on Zomato (which owns Blinkit) with a target price of Rs 330.00
• Nomura has raised its target for Zomato to Rs 370.00
• Morgan Stanley set an even more optimistic target of Rs 390.00

Blinkit, under Zomato's ownership, is making strides towards profitability. The company is expected to reach adjusted EBITDA breakeven by the fourth quarter of FY26. Additionally, Blinkit has set an ambitious target of expanding its network to 2,000 stores by December 2025, further solidifying its market position.

Stock Performance

The market's confidence in the quick commerce sector is reflected in recent stock movements:

• Zomato shares rose 1% to Rs 325.00, marking a significant 60% increase over the past six months
• Swiggy, while not publicly traded, has seen its valuation rise, with shares gaining 2% to Rs 427.00, representing a 19% increase over six months

Conclusion

While Amazon's entry into the quick commerce space adds a formidable competitor to the mix, analysts believe that Blinkit and Swiggy's established presence and scale will be difficult to overcome in the short term. The quick commerce market in India continues to evolve rapidly, with incumbent players working to strengthen their positions as new entrants like Amazon seek to carve out their share of this fast-growing sector.