Swiggy Rises Sharply Following a Buy Rating from a Foreign Brokerage

Swiggy grew by 8.90% to reach Rs 469.65 after a foreign brokerage began coverage on the stock, assigning it a ‘buy’ rating and setting a target price of Rs 515.

The brokerage highlighted that Swiggy is strategically poised for growth, currently trading at a 35% discount compared to Zomato. It noted that in the online food delivery (OFD) sector, Swiggy is closing the margin and scale gap with Zomato.

Additionally, in the quick commerce (q-com) area, Swiggy has demonstrated promising developments, although areas still require enhancement. The brokerage maintains a positive outlook on Swiggy’s future, recognizing substantial growth opportunities in the changing market landscape.

Swiggy officially entered the stock market on November 13, 2024, with its shares debuting at Rs 412, reflecting a 5.64% premium over the issue price of Rs 390. The company’s initial public offering (IPO) was met with strong demand, being subscribed 3.59 times.

Bidding for the IPO commenced on November 6, 2024, and concluded on November 8, 2024. The price range for the IPO was set between Rs 371 and Rs 390 per share.

Swiggy is a modern, consumer-centric technology company that provides users with a user-friendly convenience platform via a single app.

This app allows customers to browse, choose, order, and pay for food delivery, groceries, and household essentials through Instamart, all while ensuring their orders are delivered right to their doorstep through a network of on-demand delivery partners.

The platform offers various services, including restaurant reservations through Dineout, event bookings via SteppinOut, product pick-up and drop-off with Genie, and participation in other hyperlocal commerce activities like Swiggy Minis.

As one of the pioneers in hyperlocal commerce, Swiggy has made significant stalk in the Indian market, introducing food delivery in 2014 and quick commerce in 2020.

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