India`s Eternal gains as Blinkit break-even boosts investor confidence
Shares of Eternal jumped as much as 8% on Thursday after its quick?commerce arm Blinkit broke even, boosting investor confidence in the company's ability to withstand intensifying competition in India's fast?growing quick delivery market.
The stock was last trading 1% higher as of 09:43 a.m. IST.
Eternal reported a 73% rise in third?quarter profit to 1.02 billion rupees ($11.2 million), while Blinkit posted adjusted core earnings of 40 million rupees, compared with a loss of 1.56 billion rupees in the previous quarter.
The company also said that founder and CEO Deepinder Goyal will step down after 18 years, effective February 1, handing over the reins to Albinder Dhindsa, the head of Blinkit. Goyal will take on the role of vice chairman.
"Goyal's move to vice chairman augurs well, as he retains strategic oversight while execution remains uninterrupted," analysts at Elara Capital said in a note.
Analysts at Jefferies and Emkay Global, meanwhile, said they remain bullish on Blinkit delivering a surprise core earnings profit.
"Blinkit delivered positive core earnings at a time when competitive intensity appears close to peaking, reflecting the underlying strength of the business," Jefferies said.
