Archive · 20 Jun 2025
Broker Initiates Coverage of Swiggy at Outperform
A financial analyst recommends buying Swiggy's stock, predicting it will do well.
Swiggy started the food and quick commerce business in India, but another company, Eternal, did better initially.
Swiggy is now making a comeback.
The analyst believes Swiggy will be the second-biggest in food delivery.
Swiggy's food delivery makes money, and its quick commerce part should need less cash soon.
The analyst sees some risks, like new competitors or slower sales growth.
Broker initiates coverage on Swiggy with an Outperform rating and a target price of ₹455.
Swiggy is a pioneer in food delivery and quick commerce, but has lost some ground to Eternal.
Swiggy is expected to be the number two in the food delivery market with 43% GOV share in FY25.
Swiggy's food delivery business is EBITDA positive with minimal capex.
The quick commerce cash burn is expected to reduce, and further equity raise may not be necessary.
- Who
- Broker
- What
- Brokerage initiated coverage on Swiggy with an Outperform rating.
- When
- June 20, 2025
- Where
- India
- Why
- Broker sees potential for growth and positive financial performance.
Risks for Swiggy
Growth Potential
Competition
Risks for Swiggy
New entrants could affect food delivery.
Growth Potential
N/A
Sales Growth
Risks for Swiggy
A slowdown in GOV growth.
Growth Potential
N/A
- Target Price
- ₹455
- CMP
- ₹390.10
- Rating
- Outperform
- Main Business
- Food Delivery and Quick Commerce
- GOV Share (FY25)
- 43%