In a boosting turn of events for investors, Swiggy shares jumped by 6.2% during intraday trading to reach INR 458.00 apiece on the Bombay Stock Exchange (BSE). This surge follows the financial services company, UBS, initiating coverage on Swiggy with a solid ‘Buy’ rating. The shares opened today’s trade 2.3% higher at INR 441.25, while UBS set a price target of INR 515 for Swiggy’s stock over the next 12 months, indicating a promising 19% upside potential.
| Table of Contents |
|---|
| Positive Market Response |
| Business Developments |
| Financial Performance |
| Future Outlook |
Positive Market Response
Since its listing, Swiggy’s shares have performed well, consistently trading above the initial listing price. In addition to UBS, various brokerage firms like JM Financial and Motilal Oswal have echoed similar sentiments, providing positive ratings and setting attractive price targets for Swiggy’s shares. This upward trend reflects not only investor confidence but also the underlying strength in the company’s business operations.
Business Developments
To further capitalize on its momentum post-listing, Swiggy is actively strengthening its leadership team with crucial new appointments aimed at enhancing different business verticals. Recent recruits include executives specialized in monetization, events and experience, driver organization, and the Instamart business. This strategic move is expected to fill leadership gaps and drive innovation within the company, positioning Swiggy well for future initiatives.
Financial Performance
Swiggy’s Initial Public Offering (IPO) raised an impressive INR 11,324 Cr, featuring a robust mix of fresh issue and offer for sale. The company has shown notable improvement in its financial performance, characterized by reduced losses and increased operating revenue. This growth has primarily been attributed to a significant boom in the Swiggy Instamart segment, indicating the effectiveness of its strategic investments.
Future Outlook
With a keen eye on the future, UBS analysts have projected that Swiggy’s quick commerce vertical is on track to achieve adjusted EBITDA breakeven by FY29. The optimistic trajectory of Swiggy’s performance post-listing, reinforced by positive outlooks from various analysts and solid fundamentals, indicates that the company is poised for substantial growth ahead.
FAQ
Q1: What triggered the surge in Swiggy’s stock prices?
A1: The surge was primarily triggered by UBS initiating coverage on Swiggy with a ‘Buy’ rating and setting a price target reflecting substantial upside.
Q2: How have Swiggy’s shares performed since the IPO?
A2: Swiggy’s shares have performed positively post-IPO, consistently trading above the listing price and garnering favorable ratings from multiple brokerage firms.
Q3: What are Swiggy’s future financial projections according to analysts?
A3: Analysts, including those from UBS, project that Swiggy’s quick commerce vertical could reach adjusted EBITDA breakeven by FY29.
