Karan Taurani Identifies Key Consumption Stocks Amid Profitability Shift in India's Quick Commerce Sector
Quick commerce turns the corner; Karan Taurani picks Eternal, Trent, and Nykaa as top consumption bets
The Economic Times
Image: The Economic Times
Karan Taurani, EVP at Elara Securities, emphasizes a shift in India's consumption landscape towards profitability, highlighting Eternal, Trent, and Nykaa as top stock picks. Quick commerce is evolving, with companies prioritizing sustainable growth, while the quick service restaurant sector shows signs of tactical recovery.
- 01Eternal (formerly Zomato) and Swiggy are pivoting towards profitability, impacting growth rates.
- 02Blinkit is ahead of Swiggy's Instamart in achieving EBITDA breakeven due to structural advantages.
- 03The quick service restaurant sector is recovering but remains a tactical play, not a structural turnaround.
- 04Taurani favors Trent over DMart for retail investments, citing potential upside.
- 05Nykaa is positioned as a long-term growth story in the beauty and personal care market.
Advertisement
In-Article Ad
Karan Taurani, EVP at Elara Securities, suggests that India's consumption sectors are transitioning from a growth-at-all-costs model to one focused on profitability. He notes that quick commerce, currently only 10% of the e-commerce market, is seeing companies like Eternal and Swiggy prioritize sustainable growth. Eternal is favored due to its profitability trajectory, having reached EBITDA breakeven faster than Swiggy's Instamart, which is estimated to take six to eight quarters longer. The quick service restaurant (QSR) sector is experiencing a tactical recovery after significant declines, driven by price cuts and base effect reversals. Taurani recommends Trent in retail for its potential 15-18% upside, contrasting it with DMart, which has already seen substantial re-rating. He also highlights Nykaa as a promising long-term investment, projecting a price target of ₹350 by FY29.
Advertisement
In-Article Ad
The shift towards profitability in quick commerce may lead to more stable pricing and service quality for consumers, impacting their purchasing decisions.
Advertisement
In-Article Ad
Reader Poll
Which stock do you believe has the most potential for growth in the next year?
Connecting to poll...
More about Elara Securities
Read the original article
Visit the source for the complete story.