Shares of Eternal, the parent company of Zomato, rebounded 1% on June 11 after a massive block deal worth ₹156 crore took place on the exchanges. The stock, which had been under pressure due to Rapido’s entry into the food delivery business, saw 61 lakh shares exchange hands, marking a turnaround in investor sentiment.
🔴 Key Highlights:
- Eternal shares traded at ₹258 apiece, recovering from a two-day slump triggered by Rapido’s aggressive pricing strategy in food delivery.
- The block deal involved nearly 60.93 lakh shares, representing 0.06% of Eternal’s total equity, at an average price of ₹256 per share.
- Rapido’s food delivery pilot in Bengaluru has raised concerns for Zomato and Swiggy, as it offers flat delivery fees of ₹25 for orders above ₹100.
- Market analysts predict a potential valuation cut of 20% for Zomato and Swiggy, should Rapido successfully scale its operations.
- Despite the competition, Eternal’s stock showed resilience, indicating strong institutional interest in the company.
📢 Market Experts’ Take:
- Karan Taurani, EVP at Elara Capital, noted that Rapido’s entry could disrupt the food delivery duopoly, but execution remains key.
- Analysts believe Eternal’s long-term fundamentals remain strong, despite short-term volatility.
⚠️ Strategic Impact:
- The block deal signals confidence among investors, potentially stabilizing Eternal’s stock price.
- Zomato and Swiggy may need to reassess their pricing models, as Rapido’s low-cost strategy gains traction.
👉 What do you think? Will Eternal’s stock continue its recovery, or will Rapido’s entry shake up the food delivery market? Drop your thoughts in the comments!
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