FOOD DELIVERY MARKET
These large-caps have ‘strong buy’ & ‘buy’ recos and an upside potential of more than 25%
Are you looking at the Nifty to figure out whether to be bullish or bearish? If yes, cast your eye back to the day last year when the big correction started. Did all stocks start falling only after September 26, 2024, the day the indices peaked? No. Several stocks across segments began declining much before that day. The lesson: Focus on companies where the broader picture of growth is intact. And let the Nifty do what it is doing. Focus on the management, a key driver of earnings. Also, because GST rationalisation will likely impact earnings in a positive way, it is probably a good time to keep scepticism aside, but with conditions.
Blinkit can break-even in Q4, says Nomura; raises Eternal target price
Nomura raised Eternal’s target price to Rs 370, projecting a 12% rally driven by Blinkit’s shift to an inventory-led model, store expansion, and expected breakeven by FY26. Food delivery remains the cash engine with strong growth prospects, while competition poses near-term risks.
Urban Company GMP doubles since IPO announcement despite some concerns. What's driving the buzz?
Urban Company's IPO is generating significant buzz, reflected in a soaring grey market premium indicating potential listing gains. Despite seemingly high valuations, investors are drawn to the company's strong financials, brand recognition, and the growth potential of the underpenetrated home services market. The IPO opens on September 10, presenting an opportunity for long-term investors.
China's ecommerce companies are getting singed by a price war
The likes of Alibaba, Meituan and JD.com have been flooding consumers with discounts and coupons to gain market share in the booming one-hour delivery segment, burning their cash in the process, eating into margins, and raising questions from investors on strategy.
Buy, Sell or Hold: Antique sees over 30% upside in Cyient DLM; JM Financial initiates coverage on Angel One
Brokerages remain bullish on select stocks, with Nomura backing Eternal for its food delivery and quick commerce leadership, Antique initiating coverage on Cyient DLM citing growth recovery and infrastructure strength, and JM Financial starting coverage on Angel One, highlighting its agile model, promoter backing, and resilient performance despite headwinds.
Swiggy gets another buy call, this time from Nomura, with Rs 550 target price
Swiggy's stock receives a 'buy' rating from Nomura, setting a target price of Rs 550, citing disciplined execution and improved breakeven visibility. Ongoing product innovations like Bolt are helping Swiggy gain market share against Zomato. Motilal Oswal also upgraded Swiggy to 'BUY', anticipating multiple tailwinds and raising food delivery growth estimates for FY26-27.
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Order now! With Zomato & Swiggy soaring, which stock should be in your portfolio?
Zomato and Swiggy have experienced significant growth, fueled by strong order volumes and improved quick commerce prospects. While GST rule changes initially caused concern, analysts believe the impact will be minimal as both companies adapt through platform fee adjustments.
Food delivery likely to get costlier on platform fee hike, GST levy
Food delivery is set to get costlier as Zomato, Swiggy and magicpin have raised platform fees ahead of the festive season, with an additional 18% GST on delivery charges effective September 22. Swiggy now charges Rs 15, Zomato Rs 12.50 (plus GST), and magicpin Rs 10 per order. The hikes highlight rising costs in India’s food delivery sector.
GST reforms, festive demand to boost food delivery and Q-commerce, say analysts
Food delivery and quick commerce companies anticipate growth. GST reforms and increased spending are key factors. The festive season may boost demand. While GST changes could raise delivery costs, subscription models might help. Some industry players see limited direct benefits. The real test lies in the upcoming festive season. A stronger growth cycle is expected.
Ola Electric auditor raises alarm; Urban Company's pre-IPO deal
Ola Electric's auditor draws attention to missing internal controls at a key subsidiary. This and more in today's ETtech Top 5.
When the Dragon meets the Elephant: Building a win-win framework for both India and China
Following a five-year hiatus, Prime Minister Modi and President Xi Jinping met to recalibrate relations, emphasising stronger people-to-people ties and expanded trade. Addressing India's trade deficit is crucial, with potential for Chinese investment in Indian manufacturing. Collaboration in public health, tourism, education and infrastructure offers mutual benefits, requiring a clear road map for sustainable partnership.
Cost of living in US: Vegetarian family of four in San Francisco spends Rs 80,000 per month on groceries. Viral video sparks buzz
Shivee, an Indian woman in San Francisco, revealed her family's vegetarian grocery expenses in a viral Instagram video. The family of four spends around $935 monthly by shopping at Indian grocery stores, Costco, Safeway, Trader Joe's, and the farmer's market. She minimizes costs by preparing all meals at home and packing lunches, keeping delivery expenses low.
Food delivery sector will surpass 20% growth over the next two to four quarters: Report
According to the report, food delivery growth has decelerated in recent quarters, with gross order value (GOV) growth easing from 19-20% in FY24 to 18% in FY25 for food delivery aggregators Zomato and Swiggy.
Move over, Tabasco! Indian chillies are turning up the heat on global hot sauce brands
Despite being one of the largest producers of chilli, India never indulged in taking over the global hot sauce market until some home-grown players like Naagin and Kaatil decided to leverage the country’s ‘spicy’ reputation.
Festive cheer with GST 2.0; Amazon’s $200 million NBFC bet
Happy Friday! Ecommerce is expected to win big this festive season on the back of new GST relief. This and more in today’s ETtech Morning Dispatch.
ETtech Explainer: Why food delivery, ecomm firms are hiking platform fees ahead of festive season
Swiggy, Zomato, and Myntra are increasing platform fees ahead of the festive season to offset rising operational costs and boost margins. Swiggy's fee is now Rs 15, while Zomato's is Rs 12. Myntra has increased its fee to Rs 25. These hikes are timed to coincide with peak spending periods, when customers are more likely to absorb the additional charges.
Urban Company IPO payday; Side effects of CBD wellness rush
Happy Thursday! Urban Company investors look at lucrative returns as the unicorn gets ready to list. This and more in today’s ETtech Morning Dispatch.
Zomato, Swiggy's GST woes; Amazon's $200-million Axio deal
With the overhaul of India's GST regime, food delivery companies Zomato and Swiggy stare at a new tax burden. This and more in today's ETtech Top 5.
Zomato, Swiggy, Blinkit delivery fees to face 18% GST. What it means for investors
India’s food delivery and quick commerce firms face higher costs after the GST Council brought delivery fees under Section 9(5) of the CGST Act, making them liable for 18% GST. Analysts estimate this could raise costs by Rs 2 per Zomato order and Rs 2.6 for Swiggy, pressuring margins as the sector remains a key driver of India’s digital economy.
Stocks in news: Jio Financial, Swiggy, Aptus Value Housing, Coal India, Maruti Suzuki
Indian markets surged, fueled by GST Council optimism. Key highlights include BHEL securing a ₹2,600 crore order and Swiggy raising platform fees in high-demand areas. Aptus Value Housing faces a potential share sale by WestBridge Capital, while Maruti Suzuki unveils its new Victoris SUV. Coal India is venturing into renewable energy with significant solar and wind power plant tenders.
Lupin gets USFDA nod for generic risperidone extended-release injectable suspension
Lupin Ltd. secured USFDA approval for its generic risperidone extended-release injectable suspension, a treatment for schizophrenia and bipolar disorder. This marks Lupin's first product utilizing Nanomi BV's technology, benefiting from 180-day competitive generic therapies exclusivity. The drug, with estimated annual sales of USD 190 million, expands access to complex injectables for patients globally.
Urban Company: GMP among 10 things investors need to know from a rare tech IPO in 2025
Urban Company is launching a Rs 1,900 crore IPO on September 10, closing September 12. With strong brand recall, a tech-driven hyperlocal model, and over 97 million service orders completed, it’s one of FY26’s most anticipated listings. Allotment is on September 15, with listing scheduled for September 17.
GST uncertainty weighs on auto stocks; 10 counters to benefit from rate changes: Sunny Agrawal
Auto stocks slipped as investors await clarity on GST hike for luxury cars and EVs. Analysts say the impact hinges on whether the higher tax applies to vehicles above Rs 20 lakh or Rs 40 lakh, with M&M largely shielded if the latter prevails.
Eternal shares rise 2% as Zomato hikes platform fee to Rs 12 ahead of festive season
Zomato's parent company, Eternal, saw shares rise by 2% after increasing its platform fee to Rs 12, mirroring a similar move by competitor Swiggy ahead of the festive season's expected surge in demand. While Zomato's profits declined YoY, revenue increased. Swiggy's losses doubled due to investments in its Instamart vertical.
Restaurants body writes to govt for rationalisation of GST rates
The National Restaurants Association of India asks the government to rethink GST rates. Restaurants face high costs from rent, aggregator commissions, and marketing. They pay 18% GST on rent without input tax credit. Food delivery platforms contribute significantly to revenue. NRAI suggests lower GST for certain products.
Labor Day 2025 Delaware: What’s open and closed on September 1, government offices, public transport and more
As the nation marks Labor Day 2025 on Monday, September 1, Delaware residents are preparing for parades, family picnics, and seasonal celebrations. The federal holiday, dedicated to recognizing the contributions of American workers, also brings adjusted schedules for banks, retail stores, postal services, and state offices.
ET Startup Awards 2025 | Comeback Kid: Capillary Technologies weathers a raging storm
The jury’s focus was on the nominees’ persistence during their lows and execution impact during their highs. Bengaluru-based Capillary Technologies ultimately clinched the award, with the jury praising its tenacity and lauding the team for an impressive turnaround.
Delivery Hero reports Q2 revenue growth slightly above expectations
Total segment revenue grew 27% on a like-for-like basis to 3.7 billion euros ($4.3 billion) in the second quarter, the company said, above analysts' estimate of 3.5 billion euros in a company-provided poll.
Chinese food delivery company Meituan's profit slides as competition intensifies
Meituan has nearly 70% of China's delivery market but the company warned that the defence of its customer base will prove expensive in the face of intensifying competition and profit margins will be under pressure in the near term.
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