Swiggy Rises 6% As Bernstein Initiates Coverage With 'Outperform' Rating, sees 25% upside
10 January 2025
Swiggy Ltd's shares saw significant momentum in Thursday's trading session, surging by 6.13% to hit a day high
Swiggy Share Price
Swiggy Ltd’s shares saw significant momentum in Thursday’s trading session, surging by 6.13% to hit a day high of Rs 520.70. The stock experienced high trading volume on the BSE, with approximately 4.30 lakh shares changing hands, surpassing the two-week average volume of 4.12 lakh shares. The turnover on the counter stood at Rs 21.90 crore, bringing Swiggy’s market capitalization (m-cap) to Rs 1,14,283.93 crore.
This upward movement followed reports that global brokerage firm Bernstein had initiated coverage on Swiggy with an ‘Outperform’ rating and a target price of Rs 635 per share.
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In December last year, Hong Kong-based CLSA also started covering Swiggy with an ‘Outperform’ call and a target price of Rs 708. Additionally, domestic brokerage Axis Securities began its coverage with a ‘Buy’ rating and a target price of Rs 640. Axis Securities highlighted Swiggy as a strong investment opportunity in India’s e-commerce space, noting its position as the second-largest player in both food delivery and quick commerce (q-com). The brokerage set a target price based on a sum-of-the-parts (SoTP) valuation, implying a March 2027 EV/sales ratio of 5.3 times, which is at a 27% discount to Zomato’s consolidated EV/sales of 7.2 times. Axis Securities justified the discount due to Swiggy’s smaller scale and delayed profitability.
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The ‘Buy’ call is also driven by Swiggy’s growth potential, with its key segments—food delivery and quick-commerce—remaining relatively underpenetrated, offering significant room for growth. Swiggy Instamart (its q-com arm) has set ambitious expansion targets, which are expected to drive accelerated growth in gross order value (GOV) and overall revenues.
In a separate development, Swiggy launched ‘Snacc,’ a standalone app aimed at delivering snacks, beverages, and quick meals within 10 to 15 minutes. Currently, the service is available only in select neighborhoods in Bengaluru, targeting urban consumers who seek speed and convenience in their dining experiences.
Swiggy Ltd's shares saw significant momentum in Thursday's trading session, surging by 6.13% to hit a day high Swiggy Share Price Swiggy Ltd’s shares saw significant momentum in Thursday’s trading session, surging by 6.13% to hit a day high of Rs 520.70. The stock experienced high trading volume on the BSE, with approximately 4.30 lakh shares changing hands, surpassing the two-week average volume of 4.12 lakh shares. The turnover on the counter stood at Rs 21.90 crore, bringing Swiggy’s market capitalization (m-cap) to Rs 1,14,283.93 crore. This upward movement followed reports that global brokerage firm Bernstein had initiated coverage on Swiggy with an ‘Outperform’ rating and a target price of Rs 635 per share. related stories In December last year, Hong Kong-based CLSA also started covering Swiggy with an ‘Outperform’ call and a target price of Rs 708. Additionally, domestic brokerage Axis Securities began its coverage with a ‘Buy’ rating and a target price of Rs 640. Axis Securities highlighted Swiggy as a strong investment opportunity in India’s e-commerce space, noting its position as the second-largest player in both food delivery and quick commerce (q-com). The brokerage set a target price based on a sum-of-the-parts (SoTP) valuation, implying a March 2027 EV/sales ratio of 5.3 times, which is at a 27% discount to Zomato’s consolidated EV/sales of 7.2 times. Axis Securities justified the discount due to Swiggy’s smaller scale and delayed profitability. top videos View all Swipe Left For Next Video View all The ‘Buy’ call is also driven by Swiggy’s growth potential, with its key segments—food delivery and quick-commerce—remaining relatively underpenetrated, offering significant room for growth. Swiggy Instamart (its q-com arm) has set ambitious expansion targets, which are expected to drive accelerated growth in gross order value (GOV) and overall revenues. In a separate development, Swiggy launched ‘Snacc,’ a standalone app aimed at delivering snacks, beverages, and quick meals within 10 to 15 minutes. Currently, the service is available only in select neighborhoods in Bengaluru, targeting urban consumers who seek speed and convenience in their dining experiences.
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