Foodie Frenzy: Swiggy's Share Price Soars after Multiple Buy Recommendations from Brokers
Swiggy bounces back following a 54% decline since December
Over the past five trading sessions, Swiggy - a popular online food delivery and quick commerce platform - has seen its share price surge by a whopping 12.7%. This bull run comes amid buy calls from at least eight brokerage firms. The company's scrip took a tumble since December 2024, falling over 54% from its high of Rs 617 to a low of Rs 297.
Here's a lowdown on the latest developments surrounding Swiggy, based on the enrichment and base article:
Revenue Growth and Quick Commerce Expansion
Swiggy's Q4 FY25 revenue clocked in at ₹7,800 crore, marking a 22% year-on-year increase. The growth is primarily attributed to both the core food delivery business and the rapid expansion of quick commerce. In fact, Instamart, Swiggy’s quick commerce platform, doubled its gross order value (GOV) to ₹4,670 crore in Q4 FY25. But it's not just about growth - the quick commerce segment is now a major growth engine for the company.
Market Share and Industry Position
Despite a broader industry slowdown, Swiggy has managed to marginally regain food delivery market share over recent quarters. Its dominant position in food delivery and growing presence in quick commerce have put it in a competitive advantage. Analysts like Morgan Stanley are optimistic, giving Swiggy an 'Overweight' rating and setting a price target of Rs 405, citing strong growth potential in both food delivery and quick commerce.
Factors Influencing Share Price
However, Swiggy's recent volatility in share prices can also be attributed to mounting losses. In Q4 FY25, consolidated net losses nearly doubled to ₹1,081 crore compared to the same period last year. The expiry of the lock-in period for certain investors in May 2025 led to increased selling pressure, causing a sharp dip in share price. Despite this, analysts remain cautiously optimistic about long-term prospects.
Other factors impacting Swiggy's share price include competition, increased spending on marketing, delivery infrastructure, and technology for Instamart, and the ongoing expenses in the quick commerce market.
The Bottom Line
Swiggy's share price movement is currently a mix of strong revenue growth offset by rising losses and short-term negative sentiment due to the lock-in expiry. But, analyst confidence and long-term growth projections for food delivery and quick commerce suggest significant upside potential if the company achieves sustained revenue growth and margin improvements. So, for food-tech enthusiasts and investors eyeing a nibble of Swiggy's shares, the future could be mouthwatering!
- The surge in Swiggy's share price over the past five trading sessions, reaching a 12.7% increase, has been influenced by buy recommendations from multiple brokerage firms.
- Swiggy's quick commerce platform, Instamart, has significantly contributed to the company's growth, with its gross order value (GOV) doubling to ₹4,670 crore in Q4 FY25.
- Despite the broader industry slowdown, Swiggy has managed to regain food delivery market share and maintain a competitive advantage with its dominant position and growing presence in quick commerce.
- The recent volatility in Swiggy's share prices can be attributed to mounting losses and the expiry of the lock-in period for certain investors in May 2025, causing increased selling pressure.
- For food-tech enthusiasts and investors, the future could be promising as analyst confidence and long-term growth projections for food delivery and quick commerce suggest significant upside potential if Swiggy achieves sustained revenue growth and margin improvements.
