Jefferies has initiated coverage on Swiggy with a ‘Hold’ rating, setting a target price of ₹400, indicating a modest upside from the current market price of ₹353. The brokerage acknowledged Swiggy’s strong market position, noting that it is a leading internet franchise in India with a 45% market share in food delivery.
Jefferies expects Swiggy to achieve high-teens growth in the coming years, driven by expansion in quick commerce and digital transformation initiatives. However, concerns remain over negative EBITDA and free cash flow (FCF) projections for FY25-27E, which could impact investor sentiment.
The brokerage believes Swiggy’s market leadership and long-term growth potential are strong, but profitability remains a key challenge, leading to a cautious ‘Hold’ stance.
Disclaimer: The above stock recommendations are based on brokerage reports and do not constitute financial advice. Investors are advised to conduct their own research before making investment decisions.
