Nomura has initiated coverage on Swiggy with a buy call and a target price of ₹550 per share. At the current market price of ₹439.75, the brokerage’s target implies an upside of around 25 percent.
The brokerage said Swiggy’s food delivery business is on a steady profitability path and has emerged as a key cash generator. It added that the company’s quick commerce vertical, while still in a challenger position, is showing signs of improving profitability and could become an important growth driver over the medium term.
Nomura highlighted that Swiggy is well-funded to scale its quick commerce operations further, with a low risk of equity dilution. The report, however, cautioned that a broader macro slowdown could pose risks to the company’s growth assumptions, particularly in the online food delivery segment.
Overall, Nomura believes Swiggy offers a compelling growth and profitability story, supported by a strong market position and improved business fundamentals.
Disclaimer: The views and investment recommendations expressed above are those of Nomura. They do not represent the views of this publication. This article is for informational purposes only and is not investment advice.
