Swiggy Shares Surge 14%, Target Price Set at ₹640 by Axis Capital - Read Now 

Shares of Swiggy soared by 14% to ₹612.30 on Monday, December 16, driven by Axis Capital’s ‘Buy’ rating and a target price of ₹640. This target reflects a 20% upside from the stock’s last closing price of ₹532.35, underscoring Swiggy’s strong growth trajectory and market position.

India’s Second-Largest Food Delivery Platform

Swiggy, the second-largest player in India’s food delivery and quick commerce markets, continues to capture investor interest. With these sectors still in the early stages of penetration, analysts foresee significant long-term growth opportunities.

Axis Capital highlighted Swiggy’s expansion strategy in the quick commerce segment and improved cost management as key drivers of future revenue growth. The company’s strengthened leadership team was also praised for navigating challenges effectively.

Financial Outlook: Path to Profitability

Swiggy is making steady progress toward profitability. Axis Capital forecasts:

• FY27 Adjusted EBITDA: ₹390 crore
• FY24 Projected Loss: ₹1,840 crore

This remarkable turnaround is attributed to:

1. Cost Optimisation: Across fixed and variable expenses.
2. Growing Brand Commissions: Particularly from its Instamart quick commerce platform.
3. Advertising Revenues: A key contributor to profitability.

Recent Block Deal Activity

In early trade, 11.1 lakh Swiggy shares exchanged hands through a block deal, further sparking interest in the stock. While the details of the deal remain undisclosed, the transaction highlights growing investor confidence.

Technical Indicators Signal Bullish Momentum

Swiggy’s stock currently trades above all major Exponential Moving Averages (EMAs), indicating a bullish trend. The Relative Strength Index (RSI), at 61, suggests room for further growth without entering overbought territory.

IPO Performance: A Strong Debut

Swiggy made its market debut on November 13, 2024, listing at ₹412 on the BSE, a 5.6% premium to its IPO price of ₹390. On the NSE, it opened at ₹420, delivering a 7.6% premium.

Since its listing, the stock price has surged by over 40%, reflecting strong investor sentiment and the company’s robust growth story.

Strategic Growth in Quick Commerce

Swiggy’s focus on quick commerce through its Instamart platform has positioned the company as a leader in this emerging segment. The combination of strategic innovation and cost efficiency gives Swiggy a competitive edge in the highly dynamic food delivery market.

Analysts’ Take

With a 27% valuation discount to Zomato, Axis Capital considers Swiggy’s current pricing justified, given its growth potential. Analysts believe Swiggy’s strong market position and profitability trajectory make it a compelling choice for long-term investors.

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