Street View: India's Eternal aggressive store rollout could be boon or bane

By Reuters News

** E-commerce platform EternalETEA.NS on Wednesday beat second-quarter revenue estimates, missed net profit views

** Co targets more than 3,500 Blinkit stores by March 2027 and about 5,000 by March 2028, up from 2,751 at September-end

** Stock up 1.5% at 317.05 rupees

EXPANSION TO YIELD RESULTS

** Jefferies ("buy", raises TP to 430 rupees from 415 rupees) says co store target signals optimism with bulk of the additions in smaller cities where economics remain encouraging despite lower average order value

** Emkay ("buy", raises TP by 5% to 420 rupees): "Blinkit is capitalising on quick-commerce opportunity via aggressive network rollout and larger scale feeding into better unit economics"

** Eternal's food delivery business delivered 21% y/y growth in net order value in Q2 vs expectation of 22%, says Nomura ("buy", TP at 350 rupees)

** Ambit ("sell", TP at 245 rupees) remains cautious as competition, new stores could drag quick-commerce profitability improvement below consensus

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