India’s new-age internet stocks are emerging as a preferred pocket for Citi, with the brokerage highlighting Eternal and Info Edge as key names while also seeing opportunities in Delhivery, Meesho and MakeMyTrip.
The comments came from Vijit Jain, Director, India Consumer Staples & Beverages Research at Citi, during a post-Q1 earnings discussion. Jain said “Eternal has been our topic in our coverage space. It’s been a topic for a while.” He also highlighted Info Edge, describing it as a different business but one that remains part of Citi’s India “topic”.
Jain added that Citi also likes several other internet-platform companies. “We do like Delhivery, Meesho, MakeMyTrip, a whole bunch of them really,” he said.
Why Citi Likes New-Age Platform Stocks
Citi’s preference comes against a backdrop of stronger-than-expected Q1 trends across several internet businesses. Jain said the key difference with these companies is that their performance is driven not just by the broader consumption cycle, but also by their ability to capture market share and increase penetration.
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“Across my coverage, the story generally has been, because it’s internet platforms, these are as much about taking market share, driving penetration, as they’ve been about macro,” Jain said.
He also pointed to continued momentum in quick commerce. There had been concerns that growth in the segment could slow, but Jain said the evidence from the quarter suggests “quick commerce continues to do pretty well, especially for the leading player in the segment and in the category.”
The comments are particularly relevant for Eternal, given its exposure to both food delivery and quick commerce through its businesses. Citi’s broader view is that platform companies have an advantage because they are competing primarily for incremental market share, unlike traditional businesses that have to defend existing formats.
For investors tracking India’s new-age stocks, Citi’s pecking order therefore puts Eternal and Info Edge at the centre, with Delhivery, Meesho and MakeMyTrip also featuring among its preferred platform plays.
Analyst Disclaimer: Unless stated otherwise neither the Research Analyst nor any member of their team has viewed the material operations of the Companies for which an investment view has been provided within the past 12 months. Citigroup Global Markets India Private Limited and/or its affiliates may have, from time to time, actual or beneficial ownership of 1% or more in the debt securities of the subject issuer.
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