Swiggy, Eternal Surge Amid Oil Price Drop; UBS Gives Sky-High Upside Targets
Food Delivery Stocks Climb on Easing Cost Concerns
Shares of food delivery giants Eternal and Swiggy continued their strong momentum on Wednesday, extending gains for the fourth consecutive session. This rally is primarily supported by a decline in crude oil prices and the moderation of geopolitical concerns.The movement in stocks reflects positive shifts within the sector. Lower crude oil prices are viewed favorably by these companies, as they directly alleviate fuel and logistics expenditures. Furthermore, this cost relief helps boost consumer sentiment and reduces anxieties related to inflation.
Fourth-Day Rally: Eternal and Swiggy Post Significant Gains
Eternal shares have demonstrated remarkable resilience, posting a 9.8 percent gain over the last four sessions. Similarly, Swiggy has registered an 8 percent rise during the same period. These sustained gains highlight investor confidence in the long-term viability of the food delivery business model.UBS Reassesses Internet Sector Outlook
UBS provided crucial insights into the trajectory of Indian internet stocks. The brokerage notes that these shares have generally experienced a challenging environment throughout 2026, with declines ranging from 10 to 30 percent so far this year. This downturn was attributed to worries over a weak macroeconomic climate, increasing competition, and potential disruption from artificial intelligence.Stabilisation in GMV and Segment Competition
Despite the market headwinds, UBS's due diligence suggests positive stabilizing trends within the sector operations. The brokerage found that gross merchandise value (GMV), net order value (NOV), and billings growth across segments are starting to stabilize after a slowdown observed in the second half of FY26. Additionally, signs of moderation are emerging in competition within the quick commerce segment.UBS Maintains 'Buy' Ratings with Ambitious Price Targets
UBS has maintained a strong 'Buy' rating for Eternal. The brokerage set a target price of ₹305, which implies a substantial upside of 20.26 percent from its previous closing level.For Swiggy, the positive outlook remains firm, and UBS retains a 'Buy' rating. They have set a target price of ₹335 for Swiggy, indicating a potential upside of 29.01 percent based on its prior close.
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