Shares of Swiggy Ltd. rose 2.77% on December 19, trading at ₹593.35 as of 10:06 AM, continuing its robust performance since its market debut. The stock, which previously closed at ₹577.35, has shown sustained investor confidence.
Key Developments:
- JPMorgan’s ‘Overweight’ Rating:
- JPMorgan has initiated an ‘Overweight’ rating on Swiggy with a target price of ₹730 per share.
- The brokerage cited Swiggy’s renewed focus and improved execution in its food delivery (FD) and quick commerce (QC) segments.
- Swiggy is projected to achieve critical scale across both verticals, with an FY27E B2C Gross Order Value (GOV) of ₹1,058 billion.
- Profitability and Valuation:
- Swiggy’s profitability is expected to expand faster than its peers between FY25E and FY28E as it scales its core businesses.
- Trading at a 1.8x EV/GOV and 6.1x EV/revenue on FY26E, Swiggy is valued at a 32-42% discount to Zomato.
- JPMorgan considers this valuation gap overly pessimistic, given Swiggy’s operational improvements.
- Future Outlook:
- The brokerage anticipates Swiggy emerging as a key player in India’s local services ecosystem, leveraging its market position to drive growth and profitability in the coming years.
Recent Performance:
- One Day Gain: +2.36%
- 5-Day Gain: +16.75%
- 1-Month Gain: +39.39%
- Year-to-Date Gain: +40.71%
Swiggy’s consistent stock performance reflects strong investor optimism and JPMorgan’s bullish outlook further bolsters confidence in its growth trajectory.
