Axis Capital has initiated a ‘Buy’ rating on Swiggy with a target price of ₹640, calling it a compelling investment opportunity as India’s second-largest quick commerce and food delivery player. Despite trailing Zomato in the market, Swiggy remains competitive and is making strides in expanding its leadership. Analysts highlight Swiggy’s underpenetrated food delivery and quick commerce businesses, which offer a long growth runway amid rising urban demand.
The company’s ambitious store expansion targets in quick commerce are expected to drive revenue growth. Additionally, cost-control measures and improved governance could boost profitability. Swiggy’s focus on innovation, ideation, and strengthening its leadership team further enhances its market position.
With India’s food delivery and quick commerce segments set to grow substantially, Swiggy is well-poised to capitalize on the opportunity. Axis believes the platform’s strategic moves and improving cost efficiency will help it stay ahead in the competitive landscape.
