We initiate coverage on Swiggy with a BUY rating and 12-mth DCF based target price of Rs535, implying 50% potential upside. Swiggy is India’s second-largest food tech company, with Food delivery (FD), Quick commerce (QC), and other verticals. We forecast Swiggy to deliver 28% revenue Cagr over FY25-28ii and become Ebitda/PAT positive by FY27ii/28ii.
Swiggy is a crucial player in India’s hyerlocal delivery space due to its strong positioning in the duopolistic food delivery market as well as top three positioning in the fast expanding quick commerce market. Its food delivery business is likely to continue to outperform the organised food services market due to expanding consumer use-cases and improving quantity of restaurants on the platform.
Recent Comments