India’s e-commerce sector is rapidly expanding, with a market size of $125 billion in 2024, projected to reach $550 billion by 2035 at a 15% CAGR. The sector benefits from increasing internet penetration, smartphone adoption, and government initiatives like Digital India, with 350 million e-commerce users expected by 2025.
Price Movement
With a market capitalization of Rs 2.02 lakh crore, the shares of Eternal Ltd were trading at Rs 210.40 per share, decreasing around 2.25 percent as compared to the previous closing price of Rs 215.25 per share.
Matter Explanation
As of March 2025, HDFC Group, a prominent foreign institutional investor, acquired 14,28,41,382 equity shares (1.48 percent stake) in the company. The investment was made through the Hdfc Mutual Fund – Hdfc Mid-Cap Opportunities Fund, marking a fresh entry into the stock.
Financial performance
Examine the company’s financial condition, revenue zoomed by 64 percent from Rs 3,288 crore in Q3FY24 to Rs 5,405 crore in Q3FY25, and during the same time frame, net profit plummeted drastically by 57 percent from Rs 138 crore to Rs 59 crore.
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Expansion Strategy
The company’s expansion strategy focuses on accelerated store additions driven by improved organizational bandwidth, not competitive pressure. While 80 percent of business remains in the top eight cities, smaller cities show promising traction with attractive ROI, highlighting growing market potential beyond metro areas. This strategic approach ensures sustainable and profitable growth.
Margins and Costs
Food delivery margins are driven by delivery costs and platform fees. Optimizing these expenses and consumer fees is crucial for margin expansion. The company aims to improve efficiencies, targeting 5 percent margins in the coming quarters through strategic cost management and operational enhancements in its delivery network and pricing structure.
Future Outlook
The management remains optimistic about profitability growth as store maturity enhances and operational efficiencies improve. They emphasize sustaining market share while optimizing margins, ensuring service levels remain uncompromised. A strategic approach focuses on long-term stability, balancing cost efficiency with quality service to drive sustainable growth and competitive positioning in the market.
Company Profile
Zomato Limited serves as an Internet site that connects users, restaurant partners, and delivery partners. The Company also provides a platform for restaurant partners to market themselves to their target audiences in India and overseas, as well as supply ingredients to restaurant partners.
Written by Abhishek Singh
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