Introduction:
Swiggy’s stock saw a wonderful five.6% surge in early buying and selling on Tuesday, accomplishing an intraday excessive of Rs 567.8 consistent with proportion on the Bombay Stock Exchange (BSE). The strong overall performance observed a tremendous record from worldwide brokerage CLSA, which initiated insurance at the food delivery massive with an “Outperform” rating. CLSA set a 12-month goal fee of Rs 708 according to percentage, reflecting a capability upside of 31.7% from Swiggy’s final remaining price of Rs 537.5.
As of 9:48 AM, Swiggy’s share price slightly dipped to Rs 554.1, still up by 3.09%. In comparison, the broader market saw a modest gain, with the BSE Sensex up 0.12% at 81,605.5 points. Swiggy’s current market capitalization stands at Rs 1.24 lakh crore, representing a 37% increase since its initial public offering (IPO) price of Rs 390 per share.
Swiggy made its market debut in November 2023 with a modest premium of 5.6%, listing at Rs 412 per share. However, it has since demonstrated solid growth, boosted by favorable analyst reports. Notably, UBS had recently initiated coverage on Swiggy with a “Buy” rating and set a target price of Rs 515, citing a significant valuation discount compared to its rival, Zomato.
UBS also highlighted Swiggy’s potential to capitalize on the rapid expansion of India’s food delivery and quick commerce markets, predicting robust revenue growth in the coming years.
Swiggy Stock Soars 5% After CLSA Sets Rs 708 Target: Strong Growth Prospects Ahead:
Despite reporting a sequential increase in losses, Swiggy has shown promising top-line growth. The company’s Q2FY25 revenue jumped 30% to Rs 3,601 crore, compared to Rs 2,763 crore in the same period last year.
Additionally, its gross order value (GOV) grew by 30% year-on-year, reaching Rs 11,306 crore. Although Swiggy’s net loss marginally narrowed to Rs 625.5 crore from Rs 657 crore in Q2FY24, the company is steadily working towards improving its financials, with analysts optimistic about the narrowing of valuation gaps with competitors like Zomato.
Conclusion:
Swiggy’s future prospects are being buoyed by its strong revenue growth, ongoing investments in strategic areas, and increasing market stability. CLSA’s optimistic outlook and substantial target price reflect growing investor confidence in the company’s potential to continue benefiting from India’s expanding food delivery and e-commerce markets.
FAQ:
- Why did Swiggy’s stock rise by 5% recently? Swiggy’s stock surged after global brokerage CLSA initiated coverage on the company with an “Outperform” rating. CLSA set a 12-month target price of Rs 708 per share, indicating a potential upside of 31.7% from Swiggy’s last closing price.
- What is CLSA’s target price for Swiggy? CLSA has set a target price of Rs 708 per share for Swiggy, which represents a 31.7% upside from its previous close of Rs 537.5 per share on BSE.
- How has Swiggy performed in the stock market since its listing? Swiggy’s stock has performed well since its listing in November 2023, gaining 37% from its IPO price of Rs 390 per share. It debuted at a premium of Rs 22, or 5.6%, and has since seen steady growth.
- What does CLSA’s “Outperform” rating mean for Swiggy’s stock? An “Outperform” rating from CLSA suggests that analysts expect Swiggy’s stock to perform better than the overall market or its industry peers over the next 12 months. The target price of Rs 708 reflects confidence in Swiggy’s future growth prospects.
- How did UBS rate Swiggy’s stock? UBS initiated coverage on Swiggy with a “Buy” rating and a 12-month target price of Rs 515. UBS believes that Swiggy is undervalued compared to its competitor Zomato and is well-positioned to benefit from India’s growing food delivery and quick commerce markets.
- What are Swiggy’s recent financials like? For Q2FY25, Swiggy reported a 30% year-on-year increase in revenue, reaching Rs 3,601 crore. The company’s gross order value also rose by 30% to Rs 11,306 crore. Although Swiggy’s net loss narrowed slightly to Rs 625.5 crore, it saw a sequential increase in losses compared to Q1FY25.
- What is the outlook for Swiggy in the coming years? Analysts are optimistic about Swiggy’s future growth, given its strong performance in revenue generation and market share stabilization. As India’s food delivery and e-commerce markets expand, Swiggy is expected to benefit from a significant compounded annual growth rate (CAGR) in both revenue and gross merchandise value (GMV) over the next few years.
- What is Swiggy’s current market capitalization? As of the latest data, Swiggy’s market capitalization stands at Rs 1.24 lakh crore.
- How has Swiggy’s stock performed since its IPO? Swiggy’s stock has gained 37% since its initial public offering (IPO) at Rs 390 per share. The stock has seen strong growth, supported by positive analyst recommendations and its expanding presence in the food delivery market.
- What is the significance of the 31.7% upside from CLSA’s target? The 31.7% upside suggested by CLSA indicates that analysts believe Swiggy’s stock has significant room for growth over the next year, making it an attractive investment opportunity for investors looking for capital appreciation.
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