Morgan Stanley has initiated coverage on Swiggy with an Overweight rating and a target price of ₹405, citing improved execution in food delivery and the company’s aggressive push into quick commerce (QC).
The brokerage raised its QC TAM estimate to $57 billion by 2030 and expects Swiggy to maintain market share. Morgan Stanley forecasts that QC will achieve contribution margin breakeven in six quarters and adjusted EBITDA breakeven in 2HFY29.
Swiggy’s food delivery margins are expected to close the gap with Eternal (Zomato) over time, while the stock valuation reflects steep investments but does not yet price in potential topline gains.
Food delivery is valued on FY28 adjusted EBITDA (25x, with a 5% discount to Eternal), while QC is valued on FY31 adjusted EBITDA (27x, with a 25% discount to Eternal).
Disclaimer: The views and target prices mentioned in this article are as stated by Morgan Stanley. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
