Swiggy Share Price Rallies Over 7% in Biggest Intraday Gain in a month. Should you buy?

Swiggy share price in focus today: Swiggy, The Popular Food Delivery and Quick Commerce Platform, Saw Its Shares SURGE 7.3% in INTRADAY TRADE on Wedns, June 4, Touching a Fourk Highk Highh of 357 Apiece, Marking Its Biggest Single-Day Gain in a Month as Sentiment Turned Positive after Global Brokerage Firm Morgan Stanley Initiated Coverage on the Stock with An ‘Overweight and a TARGET DE 405 per share.

A key driver for the positive outlook is swiggy’s improved execution in food delivery, where it has marginally registered market share over the last few Quarter. While The Overall Food Delivery Market Has Slowed Down, The Brokerage Believes That The Company Can Still Deliver Gov Growth at A 15.8% CAGR (FY25-28e), Along with improoving margins in the business.

In addition, swiggy’s strategic investments in quick commerce are expected to unlock significant value. Morgan Stanley has revised the total addressable market (TAM) For QC Upwards to USD 57 Billion by 2030 (From UsD 42 Billion Earlier), Projecting Swiggy to MainTain Its 22% Market Share.

The Brokerage Anticipates Contribution Margin Breakeven for the QC Business by 1HFY27 and Adjusted Ebitda Breakeven By 2HFY29, Despite Forecasting Over Usd 1.2 Billion in Cumulative Losseses Phase.

Morgan Stanley also highlights that white the market appears to be pricing in swiggy’s QC-Related Cash Burn, It does not does not does not adequately value the upside potential from that. The Firm Values ​​Swiggy’s Food Delivery Segment at 194 per share and estimates the qc segment could be worth 197 per share, suggesting a 22% upset from the stock’s monday closing price.

The company’s balance sheet strength, drive by profit from food delivery and treasury income, is seen as adequate to fund QC expansion without immediatiout immediation dilution rice.

Furthermore, Swiggy’s concerted efforts to improve operational efficiency, launch innovative services like 10-minute food delivery (bolt), and make strategic senior-liewel hires on Its turnaround story.

However, the report also also outlines several key risks, including the threat of weaker execution, which could result in market share lawses in both QC and Food Delivery. Swiggy’s QC Segment, Still in Investment Mode, FACES High competitive intensity, which count puush ​​losses highr than expected and trigger further Capital Requirements.

Swiggy share price trend

After Being Under Pressure for Four Consecurable Months, The Stock Took A Bryef Breather in May, Ending The Month With A Marginal Gain of 5%. In the current month so far, it is up by 7%.

Swiggy Had an upward Momentum for two months following its listing on November 13, debuting with a 7.7% premium at 420, Above the issue price of 390 per share. However, it subsequently came under sustained seling pressure, which drave the stock down to an all-time low of 297 Apiece.

At current levels, the stock is trading 16.7% below its issue price and 10.25% below its iPo price.

Disclaimer, The views and recommendations giving in this article are that of individual analysts. These do not represent the views of Mint. We Advise Investors to Check With Certified Experts Before Taking Any Investments Decisions.