Bernstein has initiated coverage on Swiggy, assigning an outperform rating with a target price of ₹635, representing a potential upside of 29% from the current market price of ₹491.75. The brokerage highlights Swiggy’s pioneering role in India’s food delivery and quick commerce sectors.
Key Takeaways:
- Swiggy, launched in 2014, is the second-largest hyperlocal platform in India after Zomato.
- India’s convenience economy, with a total addressable market of $70 billion and 8% penetration, offers substantial growth opportunities.
- Swiggy is expected to benefit from a 50%+ CAGR growth in super-fast delivery, one of the fastest-growing markets globally.
- Market share stabilization at 42% is anticipated, supported by better customer acquisition and product innovations like Bolt and Swiggy One Lite.
- Adj. EBITDA margins projected to improve from 1.2% in Q2FY25 to 4% by FY30, aligning with Zomato’s margin trajectory.
Swiggy is well-positioned to emerge as a winner in India’s growing convenience economy with its focus on innovation and operational efficiency.
Disclaimer: This article is for informational purposes only. Please consult your financial advisor before making any investment decisions.
