Blinkit Surge Elevates Deepinder Goyal’s Wealth
Eternal CEO Deepinder Goyal has experienced a remarkable surge in his wealth, with his net worth increasing by ₹2,000 crore in just two trading sessions. This spike is attributed to a significant rise in Eternal’s stock, which soared over 21% to reach an all-time high of ₹311.60 on the National Stock Exchange (NSE). Goyal’s current net worth stands at approximately ₹11,515 crore ($1.9 billion), driven by investor enthusiasm surrounding the rapid growth of Blinkit, a quick-commerce platform that has recently outperformed Zomato in net order value.
Stock Surge and Market Capitalization
The recent rally in Eternal’s stock has propelled its market capitalization beyond ₹3 lakh crore, surpassing established companies like Wipro, Tata Motors, Nestle, and Asian Paints. This surge reflects a growing investor confidence in the quick-commerce sector, particularly in light of Blinkit’s impressive performance. The company’s ability to overtake Zomato in terms of net order value marks a pivotal moment in its business strategy, reinforcing Goyal’s vision for the future of quick commerce. Investors have responded positively, leading to a significant increase in Goyal’s wealth as his 3.83% stake in Eternal gained substantial value.
Investor Sentiment and Brokerage Upgrades
The enthusiasm among investors has not only benefited Goyal but also positively impacted associated companies. Info Edge, which holds a 12.38% stake in Eternal, saw its stock rise by over 3%, with its holdings now representing more than a third of its total market capitalization. Rival company Swiggy also experienced a 7% increase, reflecting a broader uplift in market sentiment across the sector. Following Blinkit’s strong performance, several top brokerages have revised their outlook on Eternal. Jefferies upgraded the stock to ‘Buy’ and raised its target price to ₹400, acknowledging that it had previously underestimated the competitive landscape.
Analysts’ Perspectives on Blinkit’s Growth
Goldman Sachs maintained its ‘Buy’ rating for Eternal, increasing its target price to ₹340, citing Blinkit’s robust 25% quarter-on-quarter growth in gross order value (GOV) and plans to expand to 3,000 stores. CLSA also retained its ‘Outperform’ rating, raising its target to ₹385 and describing Blinkit’s rise as a “seismic shift” in Eternal’s business model. Despite a mixed performance in the first quarter, analysts noted management’s optimistic outlook on quick commerce, suggesting that the company is successfully pivoting under Goyal’s leadership.
Future Prospects for Eternal and Blinkit
As the quick-commerce sector continues to evolve, Eternal’s strategic focus on Blinkit positions it well for future growth. The company’s recent achievements indicate a strong demand for its services, and analysts expect sustained momentum in the coming quarters. With Goyal at the helm, the company is poised to capitalize on the increasing adoption of digital commerce in India. The positive market response and upgraded analyst ratings reflect a growing belief in Eternal’s potential to thrive in the competitive landscape of food services and quick commerce.
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