This food delivery giant hit 52-week high, rallying over 18% in three days ahead of second quarter results

In the last five sessions since November 21, the food delivery stock has jumped more than 20%. Investors are focusing on it ahead of the company's first quarterly results post-listing, which is scheduled to be released on December 3.

Swiggy’s board of directors will consider and approve the unaudited financial results for the quarter and half year ended September 30, 2024, on December 3, the company informed the stock exchanges on Tuesday.

Swiggy Q2 results: Experts predict 35% rise in GMV

Ahead of the results, experts are positive on the company’s potential for growth due to India’s expanding online food delivery and quick commerce market. Experts also predict Swiggy will leverage its duopoly position in the food delivery market alongside Zomato. The company is also likely to benefit from improving margins and scale.

Swiggy posted a loss of ₹611.01 crore in the June quarter of FY25. Market experts believe that the company is at least 2-3 years away from PAT level breakeven. The company’s group Earnings Before Interest and Tax (EBIT) could reach the breakeven level by FY28. However, the company is expected to achieve a Gross Merchandise Value (GMV) growth of 35% and revenue growth of 23-29% between FY24 and FY27.

Experts project that the company’s quick commerce sales will likely grow by 76% through FY27, backed by increasing order density. However, factors such as operational inefficiencies, execution hurdles, and intense competition pose challenges for the company.

Swiggy shares rise 19% from the listing price

Shares of Swiggy Ltd. made its stock market debut on Wednesday, November 13. The stock listed at ₹420 apiece on the NSE, a premium of 7.7% against the issue price of ₹390 per share. Shares of Swiggy opened on the BSE at a premium of 5.64% at ₹412 apiece. At its 52-week high, the stock is currently trading more than 19% higher than its listing price and over 28% higher than its issue price. Shares of Swiggy Limited closed at ₹505 apiece, up 9.33%, on the NSE.