UBS has initiated a Buy rating on Swiggy, setting a target price of ₹515. The brokerage highlights Swiggy’s strong positioning in India’s online food delivery (OFD) and quick commerce (Q-com) segments, with significant room for growth. Operating at a 35% valuation discount to Zomato, Swiggy is closing the gap in terms of scale and margin performance.
The quick commerce segment shows promising signs, with Swiggy leveraging its logistics expertise to meet consumer demands for rapid delivery services. However, UBS cautions that Swiggy still needs to improve operational efficiencies to maximize its potential. The brokerage believes that Swiggy’s dual-focus strategy across food delivery and Q-com provides an edge in the competitive landscape, making it a strong contender for long-term investment opportunities.
