Zomato and Swiggy Share: First both the shares fell, then why did the buying suddenly return, what will happen next!

News Topical, Digital Desk : Zomato (Eternal) shares opened at Rs 322.40 against a closing price of Rs 321.45 on August 20. After this, the share came down to Rs 320. But after an hour, the stock returned to its bullish trend and the share price increased by 2 percent. On the other hand, the same pattern was seen in Swiggy shares. The share opened at Rs 408.50 against a closing price of Rs 409.70. Then the decline deepened and the share came down to a price of Rs 406. But after an hour, the share jumped 1.5 percent. Experts have cited a report on this.

A report has come from DAM Capital. In this, it has advised to bet on food delivery companies and has advised buy on Eternal and Swiggy.

What is in the report, they tell you that DAM Capital has started coverage on the food delivery space and has clearly said that these companies have now "matured" and can show margin expansion and free cash flow growth in the next 3 years. Eternal (Zomato) Call: Buy Target price: ₹400/share Growth forecast: 42% during FY25–28 EBITDA profitability expected in QC business (Quick Commerce) by 4QFY26. Eternal (Zomato) is already PAT profitable. Swiggy Call: Buy Target price: ₹515/share Growth forecast: 28% EBITDA profitability during FY25–28 Target of 4QFY28. The company will achieve PAT profitability by FY28. 

Positive factors - Working capital efficiency is improving. Both companies will show strong free cash flow in the next 3 years. The message for investors is clear that Zomato (Eternal): Already in profit, and QC business will become EBITDA positive by FY26. Swiggy: Long-term play, profitability by FY28. DAM Cap has given Buy rating in both stocks. 

Read More: Trade Setup, 20 August: Has a new bull rally started or is the decline yet to happen? Know all the answers