Swiggy shares rally more than 6% as analysts gung-ho on stock; check details

As many as 12 analysts, including JP Morgan, have initiated coverage on the leading quick commerce firm.

Bernstein coverage

In its note, the brokerage, as per news reports, opined that Swiggy would become one of the key winners in India’s convenience economy—one of the fastest-growing markets globally with a compound average growth rate (CAGR) of more than 50%.

Swiggy is expected to gain from a structural shift towards super-fast delivery models in the convenience economy, which has an 8% penetration in the $70 billion total addressable market (TAM), as per the brokerage.

While Swiggy's market share tumbled 4% over the past three years, the global brokerage anticipates its market share to be sustained at 42%. The eventual market share stabilisation is believed to be bolstered by innovative product launches, including Bolt and Swiggy One Lite, and better customer acquisition.

Bernstein also anticipates an expansion in the company’s adjusted EBITDA margins from 1.2% in Q2FY25 to 4% by FY30, following the same trend as Zomato’s margin expansion.

JP Morgan’s positive note

On December 19, JP Morgan initiated coverage on Swiggy. The global brokerage expects it to catch up across food delivery and quick commerce verticals due to a “renewed focus” and “improved execution,” multiple media reports stated.

The note added that the company will achieve critical scale across its core segments and outperform its competitors in terms of profitability expansion from FY25 to FY28.

Furthermore, JP Morgan called Swiggy an “underappreciated winner” in the Indian local services ecosystem.

Swiggy expands into rapid food delivery with Snacc

Swiggy’s new 15-minute snacks and beverage delivery app, Snacc, went live on Monday, January 7. The app is currently operational in some parts of Bangalore, and according to reports, it plans to expand to more areas across the country.

This is the company’s foray into the rapid food delivery space.

Swiggy IPO

Swiggy debuted on November 13, 2024, listing at ₹412 per share on the NSE and the BSE, a 5.64% premium over the issue price of ₹390.

The scrip was trading at ₹500.95, up 2.11% from its previous close of ₹490.60 at around 1:36 p.m. on the NSE.

As of January 8, the company has a total market capitalisation of ₹1.12 lakh crore, as per the NSE.