CLSA, a global brokerage firm, is the most recent analyst to express optimism about Swiggy, the massive food delivery company. With a target price of 鈧�708, the company has initiated an “outperform” rating on Swiggy’s shares, indicating a potential upside of around 32%.
The food delivery to fast commerce shares increased by 5.6% to reach a day’s high of 鈧�567.80 following CLSA’s initiation report. Swiggy’s current price is almost 38% higher than its initial public offering (IPO) price of 鈧�412, and it is only 1.5% below its peak of 鈧�576.95, which was reached on December 5.
In the meantime, it has risen more than 45% since hitting its 52-week low of 鈧�390.70 on the day of listing. Strong investor interest in Swiggy’s long-term growth story is demonstrated by this impressive performance.
Swiggy’s 鈧�11,327.43 crore initial public offering (IPO), which was available for subscription from November 6 to November 8, garnered significant interest from both institutional and individual investors, solidifying its position in the market.
On November 13, Swiggy shares made a respectable start on the stock market, listing at a 7.7% premium at 鈧�420 compared to the NSE’s issue price of 鈧�412.
CLSA claims that Swiggy has enormous growth potential and plays in a huge total addressable market (TAM) that includes rapid commerce and meal delivery. CLSA pointed out that Swiggy’s growth and profitability might be accelerated with better execution.
CLSA estimates food delivery and quick commerce to have a FY27 TAM of $16 billion and $27 billion, respectively. “With food delivery being a two-player market and quick commerce likely dominated by three players, Swiggy has large headroom for growth in both categories. We see Swiggy’s GOV and revenue to grow at a CAGR of 43% and 32% in FY24-27,” CLSA said.
The brokerage emphasized that Swiggy’s stock price accurately reflects this valuation disparity, even though it acknowledged Swiggy’s position as the second-largest competitor in the meal delivery market, after Zomato. It stated that Swiggy has ample opportunity to succeed because the market is too large for a single player.
Several other brokerages have echoed Swiggy’s positive view, expressing optimism about the company’s capacity to leverage strong industry tailwinds.
JM Financial updated its target price for March 2026 to 鈧�550 per share, up from 鈧�470 previously, and maintained its “Buy” rating on Swiggy shares. Swiggy’s food delivery company is still valued by JM Financial at a 45x EV/FY27E Adjusted EBITDA multiple.
The brokerage increased the value of Swiggy’s rapid commerce division, Instamart, from 1.25x to 1.75x EV/FY27E GOV multiple, noting better growth profiles and profitable contribution margins. The brokerage’s heightened faith in Swiggy’s long-term prospects is reflected in this change.
Swiggy’s “all-in-one app” approach was emphasized by Motilal Oswal (MOSL), who thinks it helps the business achieve high cross-utilization across services and improve operational efficiencies. MOSL emphasized Swiggy’s potential to capitalize on strong hyperlocal delivery business trends, even though Zomato is the industry leader.
Swiggy: Q2 results
Swiggy, a food delivery aggregator, recorded a net loss of 鈧�625.5 crore for the September quarter, which is less than the 鈧�657 crore for the same period the previous year. 鈧�611 crore was the loss for the preceding quarter, which ended in June.
In contrast to 鈧�2,763 crore in the same quarter last year and 鈧�3,222 crore in the June quarter, revenue increased drastically, up 30% year over year to 鈧�3,601 crore.
The business stated in its post-earnings investor presentation that it expects to break even by the third quarter of FY26 and to break even on adjusted EBITDA by the July鈥揝eptember quarter of FY2025.
In the very competitive quick commerce and food delivery sectors, Swiggy has proven to be resilient and has strong development potential. The company keeps gaining popularity among investors due to positive analyst recommendations, such as CLSA’s upbeat forecast.
