Motilal Oswal has initiated coverage on Swiggy with a Neutral rating and a target price of ₹475, citing the company’s potential to redefine consumer behavior in India through its unified platform approach. The brokerage highlighted Swiggy’s versatility in catering to urban consumers with its all-in-one app strategy, combining food delivery, quick commerce, and grocery needs.
Motilal Oswal sees quick commerce as a transformative opportunity, positioning Swiggy to be among the top three players in this rapidly expanding market. The platform’s ability to drive cross-utilization of services gives it a competitive edge in operational efficiency. However, the brokerage noted that Swiggy has lost some of its leadership momentum in food delivery and quick commerce to its rival, Zomato, due to execution gaps.
Despite these setbacks, Motilal Oswal emphasized Swiggy’s strong foundation and the potential for turnaround through better execution and strategic leveraging of its platform. The company’s focus on expanding its customer base, boosting order volumes and values, and achieving profitability through improved unit economics underpins its long-term growth prospects.
Swiggy’s ability to regain its competitive edge could make it a significant player in India’s evolving quick commerce landscape, according to Motilal Oswal.
