Brokerage firm JM Financial has initiated coverage on Swiggy, assigning the stock its first ‘buy’ rating and setting a target price of ₹470, which reflects a 20% potential upside from the IPO price of ₹390. Swiggy, which listed at an 8% premium on November 13, saw its shares surge to ₹448, marking a gain of around 15%.
JM Financial analyst Swapnil Potdukhe expressed confidence in Swiggy’s growth trajectory, highlighting the potential of its Instamart quick commerce segment to reach a scale comparable to its core food delivery business. The brokerage views Swiggy as a significant player in India’s hyperlocal delivery market, trailing only Zomato, and sees multiple avenues for the company to achieve sustainable margins.
As of 12:07 pm, Swiggy shares were trading 13.59% higher at ₹443.00 on NSE.
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