Swiggy share value jumps 6% as CLSA initiates ‘outperform’ ranking on the inventory, sees 32% upside

Swiggy share value: World brokerage agency CLSA has grow to be the most recent to affix the rising record of analysts optimistic about meals supply large Swiggy. The agency has initiated an “outperform” ranking on Swiggy’s inventory, setting a goal value of ₹708, which suggests a possible upside of almost 32%.

Publish CLSA’s initiation report, the meals supply to fast commerce inventory climbed as a lot as 5.6 per cent to its day’s excessive of ₹567.80. Swiggy is now buying and selling almost 38 per cent larger than its IPO value of ₹412, and is simply 1.5 per cent away from its all-time excessive of ₹576.95, scaled on December 5.

In the meantime, it has superior over 45 per cent from its 52-week low of ₹390.70, hit on the itemizing day. This strong efficiency underscores sturdy investor curiosity in Swiggy’s long-term development story.

Swiggy’s ₹11,327.43 crore IPO, which was open for subscription from November 6 to November 8, attracted appreciable consideration from institutional and retail buyers alike, additional establishing its presence available in the market.

Swiggy shares made an honest inventory market debut on November 13 because the inventory listed with a 7.7 per cent premium at ₹420 as in opposition to the difficulty value of ₹412 on the NSE.

CLSA’s Perspective

In accordance with CLSA, Swiggy operates in an enormous complete addressable market (TAM) spanning meals supply and fast commerce, having immense development potential. CLSA famous that Swiggy may see improved execution with accelerating development and profitability.

CLSA estimates meals supply and fast commerce to have a FY27 TAM of $16 billion and $27 billion, respectively. “With meals supply being a two-player market and fast commerce doubtless dominated by three gamers, Swiggy has giant headroom for development in each classes. We see Swiggy’s GOV and income to develop at a CAGR of 43% and 32% in FY24-27,” CLSA stated.

Whereas the brokerage acknowledged Swiggy’s place because the second-largest participant in meals supply, trailing Zomato, it emphasised that this valuation hole is well-reflected in Swiggy’s inventory value. It stated the market is just too large for a single participant and thus sees sufficient alternative for Swiggy to thrive.

Bullish calls on Swiggy

Swiggy’s promising outlook has been reiterated by a number of different brokerages, all of whom are optimistic concerning the firm’s skill to capitalise on strong business tailwinds.

JM Monetary retained a ‘Purchase’ ranking on Swiggy shares and revised its goal value for March 2026 to ₹550 per share, up from ₹470 earlier. JM Monetary continues to worth Swiggy’s meals supply enterprise at a 45x EV/FY27E Adjusted EBITDA a number of.

For Instamart, Swiggy’s fast commerce arm, the brokerage raised its valuation to 1.75x EV/FY27E GOV a number of from 1.25x, citing improved development profiles and constructive contribution margin profitability. This adjustment displays the brokerage’s elevated confidence in Swiggy’s long-term potential.

Motilal Oswal (MOSL) highlighted Swiggy’s “all-in-one app” technique, which it believes permits the corporate to attain sturdy cross-utilization throughout companies and drive higher operational efficiencies. Whereas noting that Zomato leads the sector, MOSL emphasised Swiggy’s potential to leverage strong hyperlocal supply business tendencies.

Swiggy Q2 outcomes

Meals supply aggregator Swiggy reported a internet lack of ₹625.5 crore for the September quarter, marking an enchancment from the ₹657 crore loss posted in the identical interval final 12 months. The loss for the earlier quarter ended June stood at ₹611 crore.

Income grew considerably, up 30 per cent year-on-year to ₹3,601 crore, in comparison with ₹2,763 crore in the identical quarter final 12 months and ₹3,222 crore within the June quarter.

In its post-earnings investor presentation, the corporate stated that’s projecting a break-even by the third quarter of FY26 and an adjusted EBITDA break-even by the July-September quarter of economic 12 months 2025.

Swiggy has demonstrated resilience and strong development potential within the extremely aggressive meals supply and fast commerce markets. With beneficial analyst suggestions, together with CLSA’s optimistic outlook, the inventory continues to realize traction amongst buyers.

Disclaimer: The views and proposals made above are these of particular person analysts or broking firms, and never of Mint. We advise buyers to examine with licensed consultants earlier than taking any funding selections.