CLSA has initiated a Buy call on Swiggy with a price target of ₹708 per share (31% upside from current levels), emphasizing its substantial total addressable market (TAM) and strong early-mover advantage. The brokerage projects the Indian quick commerce market to grow sixfold between FY24 and FY27, with Swiggy emerging as one of the largest beneficiaries.
Despite lagging behind Zomato in market share, CLSA believes Swiggy’s current valuation already reflects this disparity. Swiggy’s execution capabilities have significantly improved, leading to accelerated growth and improved profitability. Its focus on quick commerce positions the company to capitalize on the expanding demand, making it a key player in the rapidly growing segment.
The brokerage highlights Swiggy’s diversified offerings, including Instamart, which enhances its ability to cater to evolving consumer preferences. CLSA expects this segment to be a major revenue driver, further strengthening Swiggy’s market presence in the coming years.
