Swiggy, Eternal Shares Dive Amid Bearish Sentiment, Analysts Bullish

TECH
Whalesbook Logo
AuthorVihaan Mehta|Published at:
Swiggy, Eternal Shares Dive Amid Bearish Sentiment, Analysts Bullish
Overview

Swiggy and Eternal shares slumped Tuesday, with Swiggy falling below its QIP and IPO prices. Despite the stock price correction, global analysts remain optimistic, citing strong fundamentals and potential for recovery. Eternal was added to CLSA's India focus portfolio.

Stock Prices Tumble

Shares of food delivery and quick commerce aggregators Swiggy Ltd. and Eternal Ltd. extended their losses Tuesday. Swiggy's stock dropped nearly 4%, marking its third consecutive day of decline. Eternal shares saw their losses deepen to 2%, the second day of falling prices.

The downturn has pushed Swiggy's shares below its Qualified Institutional Placement (QIP) price of ₹375 and its Initial Public Offering (IPO) price of ₹390. The company had raised ₹10,000 crore through the QIP to strengthen its finances.

Analyst Optimism Persists

Despite the recent sell-off, global funds and analysts maintain a positive outlook on Swiggy. Matt Orton, Chief Market Strategist at Raymond James, sees potential for a turnaround. He highlighted Swiggy's strong credit lines for investment and upcoming GST reforms that could boost consumption.

"I think Swiggy looks fairly cheap," Orton stated, expecting a positive performance through Q1, Q2, and into 2026.

Portfolio Moves and Ratings

Brokerage firm CLSA has incorporated Eternal into its India focus portfolio to enhance consumption exposure. This move involved removing Reliance Industries and Nestle India. CLSA's inclusion of Eternal signals confidence in the company's growth prospects.

Coverage for Eternal is strong, with 33 analysts recommending a "buy" out of 29. Four analysts have issued a "sell" recommendation. Swiggy sees similar analyst favor, with 28 analysts covering the stock; 23 recommend "buy," two suggest "hold," and three advise "sell."

Current Trading Snapshot

Eternal shares are attempting to recover from intraday lows, currently trading 1% lower at ₹278.8, down approximately 25% from its record high of ₹368. The stock ended January with three consecutive months of losses. Swiggy shares hit a daily low, trading 4.4% lower at ₹361.95, down 42% from its post-listing high of ₹617.

Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.