Archive · 27 Aug 2026
CLSA Favors Eternal, DMart and Nykaa Among Consumer Stocks
CLSA is a brokerage that studied several companies linked to shopping and online services in India.
It likes Eternal, DMart and Nykaa more than the other companies it reviewed.
Eternal owns Blinkit, a quick-commerce service that delivers products quickly.
Blinkit had many more weekly active users than Instamart and DMart Ready in CLSA’s tracking.
DMart is popular because its stores aim to keep costs and prices low.
It is also selling more products under its own brands.
Nykaa focuses on beauty, personal care and fashion products.
CLSA believes Nykaa can grow by attracting more customers and improving profitability.
Swiggy can still grow, but CLSA is more cautious because of competition and other risks.
CLSA rates Eternal, DMart and Nykaa as Outperform consumer stocks.
Eternal and DMart receive High-Conviction Outperform ratings, while Swiggy is rated Hold.
Eternal has a Rs 506 target price and the highest reported upside, linked mainly to Blinkit growth.
DMart’s investment case centers on low operating costs, private-label expansion and new stores.
Blinkit leads quick-commerce platforms with 57.4 million weekly active users, versus 11.9 million for Instamart and 1.6 million for DMart Ready.
- Who
- CLSA, Eternal, DMart, Nykaa and Swiggy.
- What
- CLSA rated Eternal, DMart and Nykaa Outperform, while rating Swiggy Hold.
- When
- In CLSA’s latest consumer-stock assessment and quick-commerce tracking.
- Where
- India’s consumer, retail, food-delivery and quick-commerce markets.
- Why
- CLSA cited Blinkit’s expansion, DMart’s low-cost model and private labels, and Nykaa’s beauty-market position; it cited competition and execution risks for Swiggy.
CLSA’s investment case
Risks and reservations
Eternal and Blinkit
CLSA’s investment case
Blinkit’s geographic expansion, wider dark-store network and customer additions could drive Eternal’s growth; food delivery may also improve.
Risks and reservations
The article does not identify a specific rating downgrade risk for Eternal, but notes that quick-commerce performance is central to the investment case.
DMart’s competitive position
CLSA’s investment case
Low operating costs, lower consumer prices, private-label growth and store additions could support sales and market-share gains.
Risks and reservations
CLSA identifies rising competition from quick-commerce companies as a key risk.
Swiggy’s outlook
CLSA’s investment case
Swiggy has growth opportunities in food delivery and quick commerce, with customer additions expected from geographic expansion and more dark stores.
Risks and reservations
CLSA rates Swiggy Hold because of rising competition, faster growth by Toing and possible under-utilisation of additional dark stores.
- Eternal rating
- High-Conviction Outperform; target price Rs 506.
- Eternal upside
- The article reports 54.5% in its detailed section, while its summary table reports 53.5%.
- DMart rating
- High-Conviction Outperform; target price Rs 5,723 and reported potential upside of 46.4%.
- Nykaa rating
- Outperform; target price Rs 376 and reported potential upside of 13.3%.
- Swiggy rating
- Hold; target price Rs 312 and reported potential upside of 8.7%.
- Weekly active users
- Blinkit had 57.4 million, Instamart 11.9 million and DMart Ready 1.6 million.
- Latest weekly additions
- Blinkit added 0.9 million weekly active users, while Instamart added 0.2 million.