After starting to cover Swiggy on Thursday, December 19, brokerage firm JPMorgan stated that the company’s shares, which have already increased by about 50% from their IPO price of ₹390, still have more space to run. With a target price of ₹730, the brokerage now has a “buy” rating on the food delivery aggregator. A possible 27% increase from Wednesday’s closing levels is implied by JPMorgan’s price objective.
Brokers that started reporting Swiggy in a new way
Swiggy’s JP Morgan has started covering the stock with a rating of “overweight.” The global brokerage set the goal of Rs 730, which would mean gains of more than 26%. A newfound focus and better execution, according to the brokerage, are helping the company quickly catch up in both the food delivery and quick commerce (QC) verticals. The brokerage stated that Swiggy trades at a 32–42% discount to Zomato, which seems excessively negative to us. Additionally, according to the brokerage, the company has reached critical scale in each of its core sectors, allowing for a faster-than-peer expansion in profitability over FY25–28.
Additionally, JP Morgan anticipates Swiggy to become the underdog or unappreciated victor in the nation’s local services market. On the other hand, BofA has started coverage with a target price of Rs 690 and a “buy” recommendation. The company’s food delivery division is its cash cow business, according to the brokerage, while Quick Commerce (QC) is a multi-year theme. Additionally, the business is showing increasing profitability and KPIs. Additionally, BofA predicted that higher growth could result from catching up in the Quick Commerce segment.
Swiggy Share Price
Swiggy Ltd.’s stock increased 2.77% on December 19, closing at ₹593.35 at 10:06 AM, maintaining its strong performance since becoming public. The stock has demonstrated consistent investor confidence, having previously closed at ₹577.35.
