Swiggy's market share win hits Eternal shares hard
Eternal Limited's shares dropped over 5% on Tuesday, landing at ₹284.50 after news broke that Swiggy grabbed more food delivery market share in November.
With more than 58 lakh shares traded, Eternal became one of the biggest losers on the Nifty 50 for the day.
Why does this matter?
Even with this dip, Eternal's stock is still up 3.3% for the year—while Swiggy has fallen by 25%.
But new labor rules are squeezing profits, adding about ₹3 extra per order in costs.
Unless these costs get passed to customers, margins could stay tight and keep pressure on the stock.
What's behind Swiggy's gain?
Swiggy pulled ahead thanks to lower average order values and fresh launches like Snacc, Bolt, and 99 Store—helping it reclaim ground from Eternal after a two-month lag.
Meanwhile, HSBC still prefers Eternal for its leadership in food delivery and quick commerce, setting a target price of ₹390.
Blinkit also stands out with a much bigger cash reserve than Swiggy right now.