Swiggy vs Eternal Stock: Expert Insights on Festive Season Investment

Investors trying to choose between Swiggy and Eternal (formerly Zomato) shares this festive season face a mixed picture. While Eternal has touched all-time highs, Swiggy continues to trade close to its IPO price, prompting questions about which stock offers better near- and medium-term prospects.

Market experts highlight the difference in earnings visibility and investor confidence between the two companies. Eternal has demonstrated consistent performance and attracts positive brokerage coverage, whereas Swiggy is still grappling with market skepticism over its profitability path.

Gaurang Shah, Senior Vice President at Geojit Financial Services, explained:

“Eternal has reached a lifetime high, while Swiggy remains close to its IPO price of Rs 385–400. The challenge for Swiggy lies in earnings visibility and pressure on the bottom line. Recent triggers like the Rapido stake sale may offer short-term gains, but the impact on earnings depends on how proceeds are utilized. Eternal, on the other hand, continues to enjoy positive coverage.”

Swiggy’s Instamart Growth
Swiggy’s quick-commerce arm, Instamart, has been a bright spot, posting over 100% year-on-year growth, with the average order value rising 26% to Rs 612. Yet, adjusted EBITDA remains negative at -15.8%, indicating that while demand is improving, profitability is still a distant goal.

The festive season could boost Swiggy’s food delivery and grocery orders, but analysts note that clarity on its earnings outlook remains limited.

Eternal’s Stronger Position
In contrast, Eternal has built greater investor trust. Strong growth in its core food delivery business, combined with expanding revenue streams, has helped it reach fresh highs in the stock market. Analysts emphasize the company’s clear path toward profitability and operational efficiency, giving it an edge over Swiggy.

For now, brokerages are more comfortable backing Eternal, viewing it as a more stable investment compared to Swiggy, which still carries uncertainties around profitability and business strategy.

Auto Sector Gains Attention
Alongside food delivery stocks, the auto sector has attracted attention this festive season. Shah noted:

“Maruti sold a historic 30,000 vehicles, Hyundai reported about 11,000, and Tata Motors also delivered strong numbers. The GST rate cut in August, combined with festive discounts, fueled late-September demand.”

Many automobile companies are considering higher capital expenditure to meet growing demand, while exports remain competitive. Despite some profit booking after recent rallies, the long-term story for the Indian automobile industry remains positive.

Disclaimer: Views and recommendations expressed are those of experts. Consult a qualified broker or financial advisor before making any investment decisions.