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CLSA has updated its recommendations for key players in the consumer sector, reflecting recent market dynamics and sector shifts.
Zomato: CLSA maintains an overweight call on Zomato with a target price of ₹353. The rise of quick commerce is expected to position Zomato as the largest listed beneficiary, significantly benefiting from its enhanced visibility and competitive pricing within evolving retail supply chain.
Marico: CLSA issues an Underperform call with a target of ₹470. Marico faces challenges as its traditional distribution advantages diminish, impacted by the rise of quick commerce platforms.
Hindustan Unilever (HUL): The recommendation for HUL is also an Underperform, with a target of ₹2,161. Similar to Marico, HUL is at risk due to the erosion of its distribution edge as quick commerce reshapes the sector.
Zepto: As an unlisted company, Zepto is emerging as a promising player in the quick commerce space, offering significant potential for customers and industry impact.
Blinkit: CLSA forecasts that Blinkit will achieve positive EBITDA and net profit by FY25 and contribute up to 37% of Zomato’s FY26 EPS. This underscores Blinkit’s growing role in Zomato’s financial performance.
Overall, CLSA report highlights the transformative impact of quick commerce on the country’s retail supply chain, with significant implications for established and emerging market players.
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