HSBC has flagged sustained intense competition in the quick commerce (Q-Commerce) space, cautioning that gross order value (GOV) growth for players like Zomato and Swiggy will remain a key investor concern in the near term.
That said, the brokerage acknowledges that consensus expectations for food delivery growth have come down to a more realistic 12-15%, which it believes is achievable. HSBC continues to maintain a Buy rating on Zomato, though it has cut its target price from ₹315 to ₹280.
Meanwhile, Swiggy, which remains in the midst of a turnaround amid competitive headwinds, has been rated Hold, with the target price reduced from ₹460 to ₹385.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
