In the medium term, the impact of ONDC could be negative for Indiamart if ONDC’s B2B operations gain traction. It could directly compete with IndiaMart.

RIL, Delhivery and Indiamart: How ONDC may impact these 3 stocksETtech
NEW DELHI: The Government of India’s attempt to democratize e-commerce and revolutionize it with large-scale seller participation on ONDC platform can benefit RIL and Delhivery, maintained global brokerage firm BofA Securities.

“RIL could be a beneficiary from ONDC — especially given that it has a strong offline network and has a logistics fleet (Grab-a-Grub & Dunzo). Delhivery as a logistics company should also benefit,” said BofA.

In the medium term, the impact of ONDC could be negative for Indiamart if ONDC’s B2B operations gain traction as it could directly compete with IndiaMart, the brokerage pointed out.

It has a target price of Rs 350 on Delhivery, Rs 2,860 for Indiamart and Rs 2,775 for RIL.

BofA analyst Sachin Salgaonkar said he expects smaller merchants who don’t have to pay higher take-rates, and consumers in tier 2/3 cities who prefer “value for money” versus convenience will be beneficiaries of ONDC.

The very few players whose dominance is expected to be broken will be part of the ONDC platform. “It remains to be seen on how the smaller merchants would benefit if the larger ecom platforms also are able to leverage ONDC to their advantage,” the analyst said.

The new platform may end up breaking the dominance of the top 2 e-commerce players — Amazon and Flipkart — who have 80% market share in the online retail industry.

If both Amazon and Flipkart integrate their platforms with ONDC, a user searching for a mobile phone on Amazon would also see results from Flipkart on the Amazon app.

Overtime, this open network is expected to allow local commerce across segments like grocery, food delivery, hotel booking, travel bookings, etc — thereby having a potentially bigger impact.

Among the government’s other digital initiatives, Bima Sugam’s success increases competition for PolicyBazaar, the brokerage said, adding that health stack would benefit hospitals/diagnostics companies as it would lead to faster turnaround at these places and lower insurance fraud.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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