Swiggy’s stock saw a gain of over 2% after Citi initiated a ‘Buy’ rating with a target price of ₹480 per share, indicating a potential 32% upside from current levels. The brokerage cited strong long-term growth potential, driven by improvements in Swiggy’s business model across both food delivery (FD) and quick commerce (QC).
Citi highlighted that Swiggy has implemented a significantly improved strategy in recent quarters, focusing on expanding market share and optimizing operational efficiencies. The company’s platform-driven approach and first-mover advantage in the quick commerce space are expected to provide sustainable growth opportunities in the coming years.
Despite competition with Zomato in the food delivery space, Citi expects Swiggy to continue prioritizing market share expansion through 2025 while shifting focus toward profitability in 2026. The brokerage is optimistic about quick commerce, where Swiggy’s Instamart has shown rapid growth despite increased market competition.
Citi acknowledged ongoing investor concerns over Swiggy’s widening losses, particularly in its quick commerce segment. However, the brokerage believes the company’s scale, brand strength, and expanding user base will translate into improved financial performance over time, making it an attractive investment in India’s growing consumer-tech sector.
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