Eternal shares trade flat; Swiggy jumps over 4%; latest updates you need to know

Eternal share price: Zomato, the food delivery arm of the broader company Eternal, has raised its platform fee to ₹12.50 (excluding GST), whereas the third-largest food delivery player, Magicpin, has also revised its platform fee to ₹10 per order, in line with broader industry trends, making it expensive for food delivery consumers. Eternal share price: Shares of food delivery companies were in the spotlight on Monday, September 8, as reports say that the hike in platform fees by Zomato, Swiggy and Magicpin ahead of the festive season is set to make ordering food costlier for millions of users across the country, which is likely to rise further due to the 18% GST levy on delivery charges from September 22. Last seen, Eternal was trading flat at ₹329.85, up 0.21% on the NSE. On the other hand, Swiggy was trading 2% higher at ₹447.80 on the NSE. The stock jumped as much as 4.53% to ₹458.95 on the NSE in the early trade. Shares of Swiggy were on buyers' lists, as, according to news reports, the global financial services and investment banking group Nomura has initiated coverage. Nomura said that Swiggy's food delivery business is now on a steady profitability trajectory and is expected to remain a key cash generator. While the company's quick commerce vertical still holds a challenger position, profitability in this segment is also likely to improve. The investment added that Swiggy is well-funded to scale its quick commerce business further, and therefore, the risk of equity dilution remains low. "However, it cautioned that a broader macroeconomic slowdown could pose risks to growth assumptions in the online food delivery space," said a report by CNBC-TV18. As regards Eternal, Nomura expects its food delivery segment to continue on a steady growth path with improving profitability. Swiggy has increased its platform fee to ₹15, inclusive of GST, in select markets. Meanwhile, Zomato, the food delivery arm of the broader company Eternal, has raised its platform fee to ₹12.50 (excluding GST), whereas the third-largest food delivery player, Magicpin, has also revised its platform fee to ₹10 per order, in line with broader industry trends, making it expensive for food delivery consumers. Estimates suggest that the additional burden on account of the 18% GST to be levied on delivery charges from September 22 is expected to add roughly ₹2 per order for Zomato users and ₹2.6 for Swiggy customers. A magicpin spokesperson told PTI that it has already been paying 18% GST on its food-delivery costs. "Recent GST changes do not impact our cost structure. Thus, for consumers, there would be no impact of the GST increase. Our platform fees will remain at ₹10 per order, which is also the lowest among major food delivery companies," the spokesperson added. Platform fees have emerged as an additional source of revenue for food delivery players in the recent past. The simultaneous hikes by Zomato, Swiggy and magicpin underline a growing trend of rising costs in India's food delivery sector, raising questions about whether affordability and convenience can still go hand in hand for millions of customers. The GST Council last week decided to reduce taxes on most of the common-use goods as part of the government's measure to boost consumer spending. The new structure GST, which comes into effect on September 22, will have two slabs of 5% and 18%, instead of the current four slabs of 5, 12, 18, and 28%. Fast-moving consumer goods (FMCG) products such as hair oil, soap, face powders, shampoos, toothbrushes, and toothpaste have come under the lower slab of 5% from 18%. (With inputs from PTI)