This northward move in the share price came after the domestic brokerage Axis Capital initiated coverage on Swiggy, with a ‘Buy’ rating and a target price of INR 640 per share
The target indicates a potential upside of 20.18% from its previous close at INR 532.50 on December 13
Since its listing on 10 November at INR 412 on the BSE, the stock has delivered a return of 29.24% of its previous closing price
Shares of foodtech major Swiggy jumped as much as 6.17% to reach an intraday high of INR 565.40 per share on the BSE today (December 16).
This northward move in the share price came after the domestic brokerage Axis Capital initiated coverage on Swiggy, with a ‘Buy’ rating and a target price of INR 640 per share. The target indicates a potential upside of 20.18% from its previous close at INR 532.50 on December 13.
However, the stock pared some gains, trading 5.50% higher at INR 561.80 as of 12 PM on the BSE. This rally in Swiggy’s stock occurred despite the broader Sensex declining by 0.47%, or 384.08 points, to 81,746.91 during the same period.
By 12 PM, around 15.28 Cr shares changed hands, and Swiggy’s market capitalisation stood at INR 1,25,867.89 Cr.
Notably, the stock has proven lucrative for investors in recent weeks, with 7 out of the last 11 trading sessions closing in the green. Since its listing on 10 November at INR 412 on the BSE, the stock has delivered a return of 29.24% of its previous closing price. This comes against its counterpart Zomato yielding 135.98% return on a year-to-date basis.Â
Last week, Swiggy diversified its offerings with the launch of an invite-only membership programme, One BLCK.
Alongside this, it also launched a new offering on its app, Swiggy Scenes allowing users to book parties, events, and live music at Swiggy’s partner restaurants. Notably, its rival Zomato  has been bolstering its play in the ticketing segment, especially after the acquisition of Paytm Insider earlier this year. Following this, it launched a separate app for its ticketing arm, District, in November.
Not to mention, Swiggy also elevated its senior executive Sidharth Bhakoo to the role of chief business officer- food marketplace last week.
Swiggy raked in a revenue of INR 60 Cr from the vertical in Q2 FY25, up 71% from INR 35 Cr in the year-ago period. In its investor presentation, Swiggy forecasted adjusted EBITDA break-even in the ongoing fiscal year for the out of home consumption vertical.Â
The vertical’s loss declined 79% to INR 9.26 Cr from INR 44.34 Cr in Q2 FY24. Adjusted EBITDA margin as a percentage of its GOV stood at -1.3% during the quarter under review as against -8.8% in the year-ago quarter.
