Swiggy's share price extended its upward momentum on Thursday, November 14, marking the second consecutive day of gains following its listing on Indian stock exchanges. The company made a notable debut on Wednesday, November 13, closing its first trading day at a 17% premium to the issue price.
On Thursday, Swiggy shares jumped as much as 7.3% intraday to a fresh high of ₹489.25 apiece on the BSE, with its market capitalisation briefly crossing the ₹1 lakh crore mark. The stock rose more than 25% from its issue price.
However, soon after the positive opening, Swiggy shares failed to hold gains and were trading in the red.
Swiggy shares were listed at ₹412 apiece on BSE, a 5.64% premium to the issue price of ₹390 per share. On NSE, the stock of food delivery and quick commerce major was listed with a 7.7% premium at ₹420.
Brokerages initiated coverage on Swiggy stock after the positive listing.
HDFC Securities initiated coverage on Swiggy shares with an ‘Add’ rating and a an SOTP-based target price of ₹430 per share, implying 4x FY27 sales.
“Swiggy — once a market leader in convenience-based use cases — has lost ground over FY22-24 in its core offerings (Food Delivery + Quick Commerce). In Food Delivery (FD), Swiggy appears to be 4-6 quarters behind Zomato. However, unless it increases MTU additions, we suspect Swiggy may continue to lag Zomato in GOV growth as other KPIs seem maxed out,” HDFC Securities said.
On profitability, given better fixed-cost absorption (with scale) in core (FD+QC), and improving order/GOV density, AOVs, and take rates in QC, the brokerage firm expects Swiggy’s overall profitability to improve significantly from -15% to 2.5%.
It projects a 26% sales CAGR, with Adjusted EBITDAM improving and RoCEs improving from -25% to 1% over FY24-27.
JM Financial said it used the multiples-based SOTP method to value Swiggy in which each of its reported segments is valued basis either EBITDA, GOV or sales multiples. These multiples are 10-50% lower than those used to value Zomato’s segments due to differences in scale and profitability.
Despite this discount, JM Financial has a ‘Buy’ recommendation for Swiggy shares and a March 2026 target price of ₹470 per share.
Prashanth Tapse, Senior VP — Research at Mehta Equities believes positive listing and price holding above its issue price of ₹390 should be seen as strong demand for the company.
“This shows investors are positive on the space, and the fear of missing out is holding investors back from missing the sector growth story, similar to the Zomato post-listing trend,” Mehta said.
He suggests Swiggy shareholders to “hold for long term” despite short-term volatility and competitive pressures in the sector.
While on an absolute basis, JM Financial said Swiggy offers decent upside, it would prefer Zomato if asked to pick only one due to its superior execution in the past and market leadership across key segments.
“We, however, suggest that investors play both (preferably with higher weightage for Zomato), as in any case both are likely to be amongst the fastest growing consumption names and could, therefore, outperform the broader market returns,” said the brokerage firm.
At 10:10 AM, Swiggy shares were trading 0.12% lower at ₹455.40 apiece on the BSE, with a market capitalisation of around ₹1,01,939 crore.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
